- 8.1.1 Appeals Operating Directives and Guidelines
- 188.8.131.52 Accomplishing the Appeals Mission
- 184.108.40.206 Appeals Delegation Orders and Policy Statements
- 220.127.116.11.1 Some Exceptions to Appeals Authority
- 18.104.22.168 Examination Cases Under Appeals Jurisdiction
- 22.214.171.124.1 No Appeals Conference or Concession on Certain Arguments
- 126.96.36.199.2 "No Immediate Tax Consequence" Cases
- 188.8.131.52 Collection Cases under Appeals Jurisdiction
- 184.108.40.206 Appeals Miscellaneous Responsibilities
- 220.127.116.11.1 Feedback Procedures to Collection and Examination
- 18.104.22.168.2 Public Speeches and Articles for Publication
- 22.214.171.124.3 Testimony by Appeals Employees in IRS Tax Cases
- 126.96.36.199.4 Requests for Appeals to Produce Records
- 188.8.131.52 Programs of Interest to Appeals
- Exhibit 8.1.1-1 Common Terms Used in Appeals
Part 8. Appeals
Chapter 1. Appeals Function
Section 1. Appeals Operating Directives and Guidelines
August 23, 2016
(1) This transmits revised IRM 8.1.1, Appeals Function, Appeals Operating Directives and Guidelines.
(1) Added a reference to the Taxpayer Bill of Rights in IRM 184.108.40.206 (2).
(2) Updated IRM 220.127.116.11 (3) to eliminate duplication and direct readers to specific conference method guidance in IRM 8.6.1, Conference and Settlement Practices, Conference and Issue Resolution, and workstream IRMs.
(3) Clarified in IRM 18.104.22.168.2 (9) that feedback is required for a "No Tax Consequence" case whether the case is closed agreed or unagreed.
(4) Changed hearing officer to appeals officer in IRM 22.214.171.124 (2) to conform to language used in IRC 6320 and IRC 6330.
(5) Clarified in IRM 126.96.36.199 (3) when and how taxpayers must request equivalent hearings.
(6) Added IRM 188.8.131.52.1 (3) to describe various forms of feedback that Appeals provides to Compliance.
(7) In IRM 184.108.40.206 (1), removed IRM 10.2.2, Physical Security Compliance Reviews, from the table of programs of interest to Appeals, because it is obsolete. Physical Security Compliance Reviews are no longer required, per the memorandum dated August 8, 2014, signed by Kevin Q. McIver, (former) Director, Physical Security and Emergency Preparedness (PSEP).
(8) Updated and added definitions in Exhibit 8.1.1-1, Common Terms Used in Appeals.
(9) Made minor editorial changes to correct citations and formatting.
John V. Cardone
Director, Policy, Quality and Case Support
The Appeals Mission is to resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer and in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.
Appeals accomplishes this mission by considering protested cases, holding conferences, and negotiating settlements in a manner which ensures Appeals employees:
Act in accord with the Taxpayer Bill of Rights (TBOR) in every interaction with taxpayers.IRC 7803(a)(3). See also Pub 5170 , Taxpayer Bill of Rights.
Provide a prompt conference and a prompt decision in each case. A prompt conference and decision enable the taxpayer to know with the least amount of delay, the final decision of the Service as to the amount of tax liability, or other issue in contention, and results in getting into the Treasury additional revenue involved at the earliest practicable date.
Make a high-quality decision in each case. A decision of high quality is required in each case and should represent judicious application of Service policy and sound legal principles.
Effect a satisfactory number of agreed settlements. It is a fundamental purpose of the Appeals function to effect settlement of contested cases - on a basis fair to both the Government and the taxpayer - to the end that the greatest possible number of nondocketed cases is closed in nondocketed status and the greatest possible number of docketed cases is closed without trial.
Appeals holds conferences to provide a meaningful opportunity for taxpayers to present their position and to consider settlement proposals to resolve tax disputes; these conferences are usually held by telephone or correspondence. See IRM 8.6.1 , Conference and Settlement Practices, Conference and Issue Resolution, and guidelines for specific workstreams as outlined in their related IRM sections, for guidance on holding an in-person conference. For guidance on conducting a virtual face-to-face conference from a remote location, see Virtual Service Delivery (VSD), also in IRM 8.6.1.
Appeals provides multilingual services to taxpayers who speak limited English, especially Spanish, to resolve tax controversies in an effective and informative manner, in accordance with IRM 22.31.1, Multilingual Initiatives, IRS Language Services. Generally, bilingual employees provide the services, either those on a bilingual position description or those who volunteer.
Generally, definitions of terms used in the manual are with the material where the term is discussed. See Exhibit 8.1.1-1. for a list and the definitions of common terms used in Appeals.
In furtherance of the Appeals Mission, it is expected that Appeals personnel provide a unified Appeals position to taxpayers and/or practitioners in the settlement of an issue. This extends to all members of Appeals involved in the case. While there may be differing positions and/or opinions during the discussion of an issue, the ultimate resolution of the issue should be based upon the conclusions reached by the Appeals employee with ultimate responsibility for the case.
Appeals is the Internal Revenue Service’s dispute resolution forum. The Commissioner granted Appeals authority to consider and negotiate settlements of Internal Revenue Service controversies. See Delegation Order 8-8 (formerly DO-66, Rev. 15), Authority of Appeals in Protested and Tax Court Cases, in IRM 1.2.47, Delegation of Authorities for the Appeals Process, and Policy Statement P-8-47, Consideration to be given to offers of settlement, in IRM 220.127.116.11.6, Policy Statements for the Appeals Process.
Delegations of Authority, more commonly referred to as Delegation Orders, place authority in the position(s) where actual operational responsibility resides. This frees officials from having to consider issues which can be handled at lower levels. Time and resources are saved when matters are forwarded directly to the designated office rather than to Heads of Office for action.
See IRM 1.2.47, Delegation of Authorities for the Appeals Process, for Delegation Orders applicable to Appeals' functional authority. See IRM 1.2.2, Delegations of Authority, for a complete listing of delegation orders broken down by IRM section and business process.
Service Policies, commonly referred to as Policy Statements, are major decisions of the Commissioner, Deputy Commissioners, Chiefs and Directors directly reporting to the Commissioner and Deputy Commissioners, Division Commissioners and/or the National Taxpayer Advocate, within the framework of basic tax administrative policies of Treasury and Congress. Service Policies govern and guide Service personnel in the administration of internal revenue laws and do not directly relate to time schedules or the allocation of funds, staffing, equipment or other resources.
There are certain issues or cases where Appeals may defer action or decline to settle:
Appeals considers controlled issues subject to the decision of Service officials assigned nationwide responsibility for specific issues. See IRM 18.104.22.168, Controlled Issues.
Appeals does not settle Compliance Coordinated Issues (CCI), formerly known as Industry Specialization Program (ISP), or other issues designated for litigation by the appropriate Associate Chief Counsel. See IRM 22.214.171.124, Coordinated and Appeals Emerging Issues, and IRM 126.96.36.199, Designation of Coordinated Issue for Litigation.
Appeals does not settle cases contrary to Technical Advice Memoranda (TAM) if the advice is favorable to the taxpayer, concerns an organization’s exempt status or private foundation classification, or concerns an employee plan’s qualification. See IRM 8.6.3, Appeals Rulings.
Once Headquarters and the taxpayer agree to terms for a change in accounting method and enter into a consent agreement, Appeals will not change those terms. Only Chief Counsel's office can revoke or modify a consent agreement in the year of change. If the facts or law changes in a subsequent year, Appeals can change the taxpayer's method to a different method.
The Internal Revenue Service is responsible for administering tax laws enacted by Congress. In carrying out this duty, Compliance examines selected tax returns in Field and Campus offices.
The following table shows a chronological listing of what happens once Compliance examines the taxpayer's return.
If ... Then ... Compliance examines selected tax returns Usually, Compliance issues a preliminary (30 or 60 day) letter. Taxpayer does not agree with proposed adjustments by Compliance They may request an Appeals conference. Taxpayer does not agree with Compliance's proposed adjustments AND does not request an appeal Usually, Compliance issues a notice of deficiency (90 or 150 day letter) or other final notice or letter providing U.S. Tax Court rights. No petition is filed in response to the notice or letter Compliance makes a default assessment based upon the findings in the notice or letter. A petition is filed Compliance routes the case through Appeals to Area Counsel to file an answer in response to the petition. The petition is answered Counsel returns case to Appeals for settlement consideration. No settlement is reached Appeals returns case to Counsel for trial preparation.
Appeals also receives Exempt Organization cases where adverse action is proposed on an organization's exempt status or private foundation classification, and Employee Plans cases involving an employee plan's qualification.
Appeals jurisdiction includes, but is not limited to, cases subject to notice of deficiency procedures or cases involving a tax liability.
In most cases, Compliance issues a preliminary (30 or 60 day) letter to the taxpayer.
In general, taxpayers request an Appeals conference and, when required, file a protest against the proposed deficiency, overassessment, or determination. (See Pub 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, for protest requirements, and IRM 8.6.1, Conference and Issue Resolution, for conference and issue resolution procedures.)
As provided in 26 CFR 601.106(b), Appeals Functions, the administrative appeal procedures do not extend to cases solely involving the failure or refusal to comply with the tax laws because of moral, religious, political, constitutional, conscientious, or similar grounds. Such arguments are given no weight in settlement.
Generally, cases considered by Appeals involve a disputed tax liability. However, in some cases there is no tax liability in dispute for the period under consideration. These cases are called "No Immediate Tax Consequence" cases.
Where required by law, IRS policy, regulation, ruling or procedure, Appeals considers cases that do not have an immediate tax consequence. This situation most frequently occurs when adjustments result in a potential deficiency or an overassessment but because of a net operating loss (NOL) carryback, no deficiency or overassessment results; or, adjustments are made to an NOL carryforward and the carryforward year has not been examined. Other examples of cases with no immediate tax consequences are estate tax IRC 6166 cases and employee plans determination cases.
As the Internal Revenue Service’s dispute resolution forum, Appeals grants consideration of these cases when requested by the taxpayer. (Exam IRM provisions discuss the procedures followed in forwarding these cases to Appeals for consideration.)
Taxpayers requesting an Appeals conference under the provisions of this section must file a protest addressing the proposed adjustment. See Pub 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, for protest requirements.
Once this type case is accepted in Appeals, it can be transferred from one office to another under the provisions of this chapter. Procedures for transferring cases are found in IRM 188.8.131.52, Transfers of Cases Between Areas Within Appeals.
If a conference is held on a "no immediate tax consequence" case and a settlement is reached, follow normal closing procedures, including preparing a Form 5402Appeals Transmittal and Case Memo. Identify the case on Form 5402, item 2 - Special Features, as one involving the settlement of a "no immediate tax consequence" case. When appropriate, secure a closing agreement on all agreed cases. Close agreed cases using closing code 03.
If settlement is not reached, include a statement on Form 5402 stating no agreement was reached. Identify the case as one involving the settlement of a "no immediate tax consequence" case on Form 5402, item 2 - Special Features. Close the case as an unagreed case using closing code 13 (unagreed pre-90).
Policy Statement 8-3 (Formerly P-8-50) governs reopening "no immediate tax consequence" cases. See IRM 184.108.40.206.3, Policy Statement 8-3 (Formerly P-8-50).
Send a copy of the Form 5402, Appeals Case Memo (ACM), and closing agreement, if applicable, to the appropriate function in the Area or Campus whether the case is closed agreed or unagreed, using the feedback method required for the case type.
Collection Due Process - The IRS Restructuring and Reform Act of 1998 (RRA 98) gives taxpayers the right to a Collection Due Process (CDP) hearing with Appeals when they receive one of the following notices:
Notice of Federal Tax Lien Filing and Your Right to A Hearing Under IRC 6320
Final Notice - Notice of Intent to Levy and Notice of Your Right To A Hearing
Notice of Jeopardy Levy and Right of Appeal
Notice of Levy on Your State Tax Refund - Notice of Your Right to a Hearing
IRC 6320 requires the taxpayer be given notice after the filing of a Notice of Federal Tax Lien (NFTL). IRC 6330 requires the taxpayer be given notice of a right to a hearing before taking levy action. The purpose of CDP hearings under IRC 6320 and IRC 6330 is to give the taxpayer an opportunity early in the collection process to work with an independent appeals officer to resolve the collection of the taxpayer's liability. After a CDP hearing and determination by Appeals, taxpayers have the right to challenge Appeals' determination in court.
Equivalent Hearing - If a taxpayer did not timely request a CDP hearing with Appeals, the taxpayer may request an "Equivalent Hearing" (EH) within a one year period beginning the day after the date of the CDP notice. The taxpayer must specifically request an EH by checking the EH box on Form 12153, verbal confirmation or a written request. In an EH, the taxpayer may raise and Appeals will consider all issues raised in CDP; however, the taxpayer does not have the right to seek judicial review of Appeals' decision.
Offer-in-Compromise - An Offer in Compromise (OIC) is an agreement between a taxpayer and the government to settle a tax liability in exchange for payment of less than the full amount owed. Appeals has jurisdiction to make decisions on OIC cases in the following circumstances:
Offers appealed after being rejected by Collection.
Offers based wholly or in part on doubt as to liability after being rejected by Examination, or if the liability was previously determined by Appeals.
Offers submitted directly to Appeals as an alternative to the proposed collection in a CDP or EH case.
Offers being evaluated by Collection when a Notice of Federal Tax Lien is filed and the taxpayer requests a CDP hearing or Equivalent hearing.
Collection Appeal Program - Collection Appeal Program (CAP) is an administrative appeal for certain collection actions. A taxpayer, or a third party whose property is subject to a collection action, may appeal the following actions under CAP:
Levy or seizure action that was or will be taken.
Notice of Federal Tax Lien that was or will be filed.
Filing of a Notice of Federal Tax Lien against an alter-ego or nominee's property.
Denials to issue lien certificates; such as subordination, withdrawal, discharge or non-attachment.
Rejected, proposed for termination or terminated installment agreements.
Disallowance of taxpayer's request to return levied property under IRC 6343(d).
Disallowance of property owner's claim to return property under IRC 6343(b).
CAP decisions by Appeals are binding on the taxpayers and the Collection functions.
Trust Fund Recovery Penalty - Trust Fund Recovery Penalty (TFRP) is a penalty against any responsible person who willfully fails to collect, account for, and pay over taxes held in trust. The TFRP is imposed for:
Willful failure to collect tax.
Willful failure to account for and pay over tax.
Willful attempt in any manner to evade or defeat tax or the payment thereof.
TFRP under IRC 6672 is equal to the total amount of tax evaded, not collected, or not accounted and paid for. The Collection function is solely responsible for recommending assertion of the TFRP. Before assessing a TFRP, a 60-day notice of proposed assessment is sent or given to the taxpayers, along with their right to an Appeal. The taxpayer has 60 calendar days to file a timely protest (75 calendar days if the letter is addressed outside of the United States). When the taxpayer files a timely protest, the case is sent to Appeals. Appeals is responsible for determining if the party is willful and responsible for the TFRP. Only Appeals can make the final administrative determination with respect to the taxpayer's protest.
Trust Fund Recovery Penalty Claims - The IRS must provide for an appeal of a Form 843, Claim for Refund and Request for Abatement. When the IRS assesses the TFRP, the taxpayer has a right to pay the appropriate amount of the assessment and file a refund claim with the IRS. If Collection denies the taxpayer's claim, Collection sends the taxpayer a letter notifying them of the 30-day time period to file a timely administrative appeal. If a timely administrative appeal is received, the case is heard in Appeals.
Appeals employees perform miscellaneous duties often involving communications with other IRS functions, and outside accounting and/or tax groups. These duties include providing feedback to Compliance, making presentations on Appeals practices and procedures, writing articles for publication, testifying in court cases, and producing records requested by taxpayers.
The following subsections provide specific guidelines to use when performing these miscellaneous duties.
Appeals Area Directors often become aware of problem areas and trends through review of work units assigned within their areas. When the need arises, discuss these concerns with Compliance management officials. Quarterly meetings between Appeals and Compliance are encouraged.
By providing meaningful feedback to Compliance functions, Appeals assists local management in their effort to achieve a better work product.
Appeals follows established procedures as described in workstream IRMs to send hardcopy or electronic copies of Appeals Case Memorandums (ACM) and/or Forms 5402 to provide case-specific feedback to Compliance. Appeals also provides feedback loop reports or other data as agreed upon in cross-functional advisory board meetings.
When feedback is warranted, the Appeals Team Manager (ATM) or Appeals Team Case Leader (ATCL) prepares a clear, concise, objective memorandum to the appropriate Compliance function. Favorable comments by memorandum are encouraged.
To avoid controversy or disclosure, the subject matter of all speeches and articles should be Appeals practices and procedures. As a matter of policy and to avoid disclosure penalties, do not discuss cases.
When the subject of a speech or article is not directly related to Internal Revenue Service or Treasury matters, clearance is not required, provided there is no conflict with the policies of the Internal Revenue Service or Department of Treasury. Further, it must be made clear that the speaker or author does not represent the Internal Revenue Service or Department of Treasury.
Speeches and/or articles must not cover any of the following:
specific cases awaiting final disposition by the Service
proposed regulations, procedures and policies which have not been finally and officially announced
legally or administratively restricted information
Discuss doubtful issues and questions on jurisdiction with the Appeals Communications Public Affairs Specialist.
Internal Revenue Service tax cases are cases referred by or on behalf of the IRS to the Department of Justice or offices of the U.S. Attorney for defense or prosecution or other affirmative action, as well as U.S. Tax Court cases. These cases include, but are not limited to, the following:
Foreclosure of tax liens
Actions affecting personal rights of employees or former employees of the IRS
Federal tort claims litigation involving IRS employees
Freedom of Information and Privacy Act litigation
Treasury Inspector General for Tax Administration (TIGTA)
Report of Foreign Bank and Financial Accounts (FBAR)
Use of an Appeals employee as a Government witness in IRS tax cases to produce IRS records or information or testify on matters discussed during the Appeals conference, or as an expert witness for the Government, is discouraged. The requesting organization must justify the need by stating the special circumstances involved. The request must be submitted to and approved by the appropriate Appeals Area Director. For additional information, see IRM 11.3, Disclosure of Official Information.
Use of an Appeals employee as an expert witness for the Government should be limited to those instances where no other qualified Service employee is available.
Upon receipt of a request, subpoena, notice, order, or other demand to testify or to produce or disclose IRS records or information in cases other than those specified in the above paragraph, refer to the procedures in IRM 11.3, Disclosure of Official Information, and consult with the local Disclosure Officer.
Appeals case memos may also be requested by taxpayers either informally or pursuant to the Freedom of Information Act (FOIA). They are not exempt in their entirety from disclosure. Due to the sensitive nature of these documents, coordinate all taxpayer requests for Appeals case memos with both Area Counsel and the local Disclosure Officer. Refer to IRM 37.1.2, Chief Counsel Directives Manual, Disclosure of Information, and IRM 11.3, Disclosure of Official Information, for guidance.
The following table lists miscellaneous IRS programs, offices, and IRM references, applicable to the Appeals organization.
Reference Topic Description IRM 1.4.30, Monitoring Internal Control Planned Corrective Actions Government Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) Audit This IRM sets forth the procedures for effective monitoring and implementation of planned corrective actions (PCAs) affecting IRS internal controls, and detailed guidance on updating GAO/TIGTA's audit tracking system with information on recommendations and PCAs resulting from audits. IRM 5.8, Offer in Compromise, and IRM 5.14, Installment Agreements Accounts Receivable Dollar Inventory (ARDI) ATEs can assist in the reduction of the outstanding accounts receivable of the Service by soliciting advance payments, using offer in compromise and installment agreement procedures, and quickly resolving problems with incorrect assessments. IRM 11.3, Disclosure of Official Information Privacy Act & Disclosure IRC 7213 provides for criminal penalties and IRC 7431 provides for civil damages for unauthorized disclosures of confidential tax information. All personnel should refer to IRM 11.3 for the procedures regarding disclosure of tax returns and return information under IRC 6103. For additional assistance regarding disclosure matters, consult your Disclosure Officer. IRM 11.5.1, Audit Process for General Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA) GAO/TIGTA Audit This IRM provides guidelines and procedures to improve timeliness and accuracy of responses to GAO/TIGTA audit findings and recommendations, ensure responses are strategic and consistent with corporate messages and the Agency’s mission, and identify controversial or sensitive issues as soon as possible. IRM 13.1, Taxpayer Advocate Case Procedures Taxpayer Advocate Service Appeals is an unusual function within the Service. Part of its authority is derived from the Commissioner and another part is derived from the Chief Counsel. Authority on cases that are docketed in the Tax Court comes from the Chief Counsel, while authority on nondocketed cases comes from the Commissioner. TAS involvement is limited to nondocketed cases where Appeals authority is received from the Commissioner. Of course, if there is a problem on a docketed case which could be resolved with TAS assistance, Appeals employees are encouraged to request TAS assistance. IRM 13.1.20, TAS Taxpayer Assistance Order (TAO) Process Taxpayer Assistance Orders Appeals employees can initiate a Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order). (on nondocketed cases, where Appeals’ authority is derived from the Commissioner. IRM 25.4, Employee Protection Employee Protection IRM 25.4.1, Potentially Dangerous Taxpayer (PDT), provides procedures and guidelines for referring and designating taxpayers under the "Potentially Dangerous Taxpayer" program. IRM 25.4.2Caution Upon Contact (CAU), provides information on the criteria for determining CAU status, procedures, five-year reviews and the location of the CAU indicator. IRM 25.16, Disaster Assistance and Emergency Relief Natural Disasters & Emergencies This IRM sets forth the procedures in designated disaster/emergency areas. Appeals must be sensitive to taxpayer needs in situations that involve natural disasters and/or emergencies.
Generally, definitions of terms used in the IRM are with the material where the term is discussed. Some common terms used in IRM Part 8 are as follows:
|90-day letter (Notice of Deficiency)||A presumptively correct legal letter in which the Commissioner determines the taxpayer’s tax deficiency. See IRM 220.127.116.11, Notice of Deficiency Definition. Term includes the 150-day letter. References include those issued by the Operating Divisions and Functional Divisions of the Internal Revenue Service.|
|Administrative File||A file consisting of one or more examined tax returns of a taxpayer, the report of examination, and all papers, correspondence, and other documents relative to the taxpayer's liability for the year or years involved. An administrative file may also consist of collection related documents such as history, correspondence, financial information, and other documents related to collection action taken on the taxpayer and the relevant tax periods.|
|ACDS||Appeals Centralized Database System|
|APGOLF||Appeals Generator of Letters and Forms. APGOLF, a subsystem of ACDS, is a compilation of most of the letters and forms used by Appeals employees.|
|APS||Account and Processing Support, the unit responsible for processing cases in Appeals.|
|AQMS||Appeals Quality Measurement System|
|ATCL||Appeals Team Case Leader|
|ATCLTM||Appeals Team Case Leader Team Manager|
|ATCTM||Appeals Tax Computation Team Manager|
|ATE||Appeals Technical Employee is an umbrella term used to refer to any Appeals employee who is assigned a case for settlement consideration.|
|ATM||Appeals Team Manager|
|ATS||Appeals Tax Specialist, an Appeals employee who works IRS campus-generated post-assessment penalty cases.|
|Audit Statement||A settlement computation which gives effect to the decision of Appeals or Counsel showing proposed adjustments, computation of revised tax liability, and deficiency or overassessment. It concerns examination issues and accompanies Appeals case memos. Referred to as Settlement Computations in IRM Part 8.|
|CAR||Case Activity Record|
|CARATS||Case Activity Record and Automated Timekeeping System. CARATS, a sub-system of ACDS, is used by ATEs to record case activity, case time, and prepare timesheets.|
|DIMS||Docket Information Management System. DIMS, a sub-system of ACDS, provides an automated method to electronically track and monitor Appeals’ receipt of docketed administrative files.|
|EP/EO||Employee Plans and Exempt Organizations, functional units within the Tax Exempt and Government Entities (TE/GE) Operating Division.|
|Hearing Officer||Any Appeals employee holding hearings or who otherwise resolves open case issues in Appeals.|
|IRC||Internal Revenue Code|
|IRM||Internal Revenue Manual|
|Nondocketed Case||A protested case in which the taxpayer has not filed a petition with the United States Tax Court.|
|Notice of deficiency (90-day letter)||A presumptively correct legal letter in which the Commissioner determines the taxpayer’s tax deficiency. See IRM 18.104.22.168, Notice of Deficiency Definition. Term includes the 150-day letter. References include those issued by the Operating Divisions and Functional Divisions of the Internal Revenue Service.|
|PEAS||Processing Employee Automated System. PEAS, an ACDS sub-system, provides an automated inventory and timekeeping system for APS employees.|
|Pre-90 Day Case||A nondocketed case. Term includes the pre-150 day cases.|
|Preliminary Letter||30-day and 60-day letters.|
|Protest||The taxpayer's statement of disagreement with the adjustments proposed by Compliance.|
|PTM||Processing Team Manager. A team manager in APS.|
|Reference Return||Return which is associated with a case solely for the purpose of providing information.|
|Service Policy||IRS policy as expressed in a policy statement approved by the Commissioner.|
|TAXCAL||Tax Court Calendar program. TAXCAL is a sub-system of ACDS that provides Appeals with a systemic method to identify and monitor Tax Court calendar cases and generate Tax Court calendar reports.|
|TCS||Tax Computation Specialist. TCS can refer to the function within Appeals Technical Services, an employee in the TCS position, or the ACDS timekeeping sub-system used by TCS employees to maintain their inventory.|