Specialized Examination Programs & Referrals (SEPR) is part of the Independent Office of Appeals (Appeals). Appeals SEPR has specialists including engineers, economists, appraisers, international specialist coordinators (ISC) and technical guidance coordinators (TGCs). These specialists provide Appeals employees with expert advice, guidance, and assistance on a variety of issues. These issues include Appeals Coordinated Issues (ACI). An ACI is an issue with IRS-wide impact or importance, requiring coordination to ensure consistent treatment. Certain ACIs require review and concurrence by the TGC/ISC before any settlement options are discussed. If an issue requires review and concurrence, the Appeals technical employee will collaborate with the TGC/ISC to reach a unified Appeals position. The Appeals team case leader or Appeals team manager has ultimate responsibility for case resolution. For a limited number of ACIs, Appeals Settlement Guidelines (ASGs) are prepared. ASGs represent Appeals’ position regarding the proper resolution of an ACI to ensure consistent treatment. If an ACI is de-coordinated, the associated ASG is withdrawn and no longer in effect. ACIs requiring review and concurrence are set forth below and updated quarterly. If an ACI involves an ASG, then a pdf of the ASG will be included next to the issue. In addition, ACIs that do not require review and concurrence are also listed below and updated quarterly. ACI issues requiring review and concurrence Appraiser penalties - IRC 6695A Charitable contributions of conservation easements: Notice 2004-41 - façade easements - IRC 170(h) Charitable contributions of open space (land) conservation easements: Notice 2004-41 - IRC 170(h) Cost sharing buy-in payments (international) Cost sharing stock-based compensation (international) Investment of earnings in U.S. property - IRC 956 IRC 6677 foreign trust penalty - Filing requirement Microcaptive insurance - IRC 831(b) Report foreign bank and financial accounts (FBAR) willful penalties Report foreign bank and financial accounts (FBAR) penalties with cumulative assessment greater than $100,000 Self-Employment Contribution Act (SECA) tax and related IRS - 6662 Penalties Settlements with governmental entities/Non-governmental entities (FINRA) - IRC 162(f) Subpart F income, foreign base company sales income, including the branch rules Transfer pricing penalty (international) - IRC 6662(e)(1)(B) & (h) Validity of Treasury Regulations ACI issues not requiring review and concurrence Alternative Energy Industry, including Solar Thermal Lens Business aircraft Charitable remainder trusts (CRATs & CRUTs) - IRC 170 & IRC 664 Digital Assets (includes Virtual Currency) Domestic production deduction - IRC 199 Excise tax – Glider kits Excise tax credit for alcohol fuel mixture, biodiesel mixture, alternative fuel & alternative fuel mixture - IRC 6426 Gifts from foreign persons - IRC 6039F IRC 6038D Form 8938 penalty IRC 6677 foreign trust penalty – other issues (such as Reasonable Cause) Offshore private banking Offshore Voluntary Disclosure Program (OVDP)/Offshore Voluntary Disclosure Initiative (OVDI) opt outs and terminations Penalties for failure to provide information on Form 5471 and Form 8865 – IRC 6038 & 6046 Penalty for aiding & abetting understatement of liability - IRC 6701 Penalty for failure to disclose reportable transactions - IRC 6707A Penalty for failure to maintain investor list - IRC 6708 Penalty for promoting abusive tax shelter - IRC 6700 Promoter penalties failure to furnish tax shelter information - IRC 6707 Qualified research activities - Including internal use software (research credit) and related penalties - IRC 41(d) Repairs vs. Capitalization Change of Accounting Method (CAM) - IRC 263(a) Report foreign bank and financial accounts (FBAR) non-willful penalties unless cumulative assessment greater than $100,000 U.S. Code Title 26, Subtitle F, Chapter 61 Penalty Assessment Authority For questions regarding the above issues, please contact Margaret Harris (domestic issues) or Maricarmen Cuello (international issues) at appeals.coordinated.issues@irs.gov.