Appeals Settlement Guidelines (ASG)

NOTE: Coordinators may have changed since settlement guidelines were published. Please refer to the Technical Guidance - International Index (PDF) for the latest coordinator contact information.

Abusive Tax Avoidance Transactions

• Business Directory for Visually impaired
• Deductions for Contributions to 401(k) or Defined Contribution Plans during Grace Period, Related Change of Accounting Adjustments, and Penalties;
• Domestic Abusive Trust Schemes
• Home Based Business Promotions
• IRC Section 302/318 Basis Shifting Transactions
• IRC Section 351/Contingent Liability
• IRC Section 44 Disabled Access Credit Tax Avoidance Schemes
• Intermediary Transaction Tax Shelters and Penalties
• Internet Shopping Portal
• Lease in, lease out (LILO)
• Notice 2000-15 Abusive Charitable Remainder Trusts
• Notice 2000-44 Transactions - Described as generating losses resulting from artificially inflating the basis of partnership interests
• Notice 2002-21 Transaction involving the use of a Loan Assumption agreement to claim an inflated basis in assets acquired from another party
• Notice 2002-35 Involves the use of a National Principal Contract to claim current deductions for periodic payments while disregarding the accrual of a right to receive offsetting payments in the future
• Notice 2002-50 Transactions involving the use of a straddle, a tiered partnership structure, a transitory partner, and the absence of a sec 454 election to claim a permanent noneconomic loss
• Notice 2002-65 Pass-through Entity Straddle Tax Shelter Transactions and Penalties
• Notice 2003-47 Transfers of Compensatory Stock Options to Related Persons
• Notice 2003-22 Certain arrangements involving employee leasing companies that have been used to avoid or evade federal income and employment taxes.
• Notice 2003-35 Tax Exempt Small Insurance Company Transactions
  under 501(c)(15) and related penalties
• Notice 2003-77 IRC 461(f) Contested Liabilities Transactions
• Preparer/Promoter Penalties
• Sale in, lease out (SILO)
• Telecommunication System for Hearing Impaired

Air Transportation

• Federal Income Tax Withholding on Compensation Paid to Nonresident Alien Crew by a Foreign Transportation Entity

Cafeteria Plans

• Heath Insurance Deductibility for Self-employed Individuals

COLI (Corporate Owned Life Insurance)

Commercial Banking

• Accrual of interest on non-performing loans (see Banking - Savings and Loan)
• Foreign Withholding Taxes (Cross Border Loans)
• Interchange Merchant Discount Fee

Construction/Real Estate

• Claim Revenue Under a Long-term Contract

Employment Tax

• Medical Resident FICA Refund Claims

Environmental

• IRC 1341 Environmental Remediation Costs

Excise Tax

• Virtual Private Networks

Food Industry

• Charitable Contributions of Surplus Food
• Package Design Cost

Forest Products

• Losses of Timber form Southern Pine Beetle
• Logging Truck Roads

Fuel from a Nonconventional Source (FNS)

• Methane Gas Project (IRC § 29 Credit), Credit for FNS

Gaming

• The Applicable Recovery Period Under IRC 168(a) for Slot Machines, Video Lottery Terminals and Gaming Furniture, Fixtures and Equipment
• Class Life of Floating Gaming Facilities

I.R.C. § 118 SALT

• State and Local Location Tax Incentives (I.R.C. § 118 SALT)
• Exclusion of Income: Non-Corporate Entities and Contributions to Capital, I.R.C. § 118

Insurance – Life

• IRC 807 Basis Adjustment – Change in Basis vs. Correction of Error
• Loss Utilization in a Life-nonlife Consolidated Return Separate v. Single Entity Approach

Intangibles

• Amortization of Employment Contracts
• Covenants Not to Compete

Interest Computations

• Net Rate Interest Netting - Requirement that Both Statutes be Open for Pre-98 Act Years
• Overpaid Estimated Taxes

International

• Foreign Sales Corporations (FSC) Advance Payment Transactions

Inventory

• Dollar Value LIFO: Segments of Inventory
• Dollar Value LIFO: Bargain Purchase Inventory
• Dollar-value LIFO: Earliest Acquisition Method

Leasing Promotions

• Lease Stripping Transactions
• Losses Reported from Inflated Basis Assets from Lease Stripping Transactions
• Intermediary Transactions Tax Shelters

Mare Leasing

Primary issue of whether expenses were incurred in carrying on a trade or business. Alternatively, whether individuals were materially participating and at risk; whether expenses were ordinary and necessary; and whether expenses should be capitalized or currently deducted.

Maquiladora

• IRC Section 1504(d) Election
• IRC Section 168(g)

Media/Communications

• Investment Tax Credit - Transition Property

Military

• Military Disability Retirement Benefits

Mining

• Strike Costs
• Excess Moisture
• Receding Face Deduction
• The Effect of Costs Incurred During a Strike on the Percentage of Depletion Computation

Motor Vehicle

• New Qualified Plug-in Electric Drive
• Dollar-Value LIFO - Definition of an Item
• Remanufacturers' Inventory of Cores
• Excess Parts Inventory

Notional Principal Contracts

• Notional Principal Contracts (Contingent Deferred Swaps)

Partnerships

• Subchapter K Anti-abuse Regulation 1.701-2

Petroleum

• Capitalization of Delay Rentals
• Cost Depletion Recoverable Reserves
• North Sea IDC Transition Rule

Pharmaceutical

• Medicaid Rebates
• Research and Experimentation Expenditures (Reg. 1.861-17(a)(4)

Research Credit

• Extraordinary Expenditures for Utilities
• R&E Credit - Self-Constructed Supplies
• Qualifying Wages Under Section 41 in Determining the Tax Credit or Increasing Research Activities
• Wages of Technical Writers and the Research Credit  

Retail

• ACRS and ITC for Suspended Ceilings
• Contributions to 401(k) Plans Attributable to Compensation Paid After Year End Under 401(a)(6);
• Tenant's Rent Leveling IRC 467 Lease Agreements
• Valuation of an Acquired Retailer's Inventory

S Corporations

• Shifting of Income to Tax Exempt Organization (SC2)

Savings and Loans

• Supervisory Goodwill
• Accrual of Interest on Non Performing Loans (see Banking)
• Validity of Regulations Sec. 1.593-6A(b)(5)(vi)
• Supervisory Goodwill

Securities & Financial Services

• Transfer or Sale of Compensatory Options or Restricted Stock to Related Persons- Notice 2003-47

Shipping

• Federal Income Tax Witholding on Conpensation Paid to Nonresident Alien Crew by a Foreign Transportation Entity (See Air Transportation)
• Income Tax Withholding on Wages Paid to U.S. Crew

Sports Franchises

• Media Rights Acquired in Connection with a Sports Franchise

State Refundable Credits

• New York State, Qualified Empire Zone, Enterprise Credit, Real Property Taxes

Telecommunications

• Taxation of Universal Service Fees

Utilities

• Investment Credit Transition Property
• Membership Payments Made to Industry-created Research Organizations