Introduction to Appeals - CTEA - Capital of Texas Enrolled …€¦ · · 2009-11-06Chief Counsel Chief, Appeals National Taxpayer Advocate Chief Financial Chief Human Capital Officer

October 2009

Introduction to Appeals

OFFICE OF APPEALS 2

Appeals

Founded

In 1927, the IRS established an administrative appeal process to resolve tax disputes without litigation.

Restructuring and Reform Act of 1998

Specifies that the IRS reorganization plan must “ensure an independent appeals function within the Internal Revenue Service, including the prohibition in the plan of ex parte communications…”

Section 1001(a)(4).

Mission

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.

OFFICE OF APPEALS 3

Commissioner

Chief of Staff

Deputy

Commissioner

Operations Support

Acting

Commissioner,

Small Business/

Self-Employed

Chief Information

Officer

Chief Counsel

Chief, Appeals

National Taxpayer

Advocate

Chief Financial

Officer

Chief Human

Capital Officer

Chief,

Agency-Wide

Shared Services

Commissioner,

Wage and

Investment

Commissioner,

Large and Mid-

Sized Business

Commissioner,

Tax Exempt and

Government

Entities

Chief,

Criminal

Investigation

Chief, EEO and Diversity

Chief, Communications

and Liaison

Director, Office of

Professional

Responsibility Deputy Commissioner

Services and

Enforcement

Director, Research,

Analysis, and Statistics

Director,

Whistleblower Office

Director, Office of

Privacy, Information

Protection & Data

Security

IRS Organization Chart

OFFICE OF APPEALS 4

Chief, Appeals

Director, EEOD (AWSS) Director, Art Appraisal Services

Director, Communications

Director,

Strategy and Finance

Strategic Planning/

Measures Analysis

Management and

Administration

Finance

Business Systems

Planning

Appeals Quality

Measurement System

Learning & Education

Director,

Technical Services

Director,

Field Operations – East

Area 1 - Manhattan

Area 2 - D.C. (Collection)

Area 3 - Nashville

Area 4 - Philadelphia

Director,

Field Operations – West

Area 7 - Dallas

Area 8 - San Francisco

Area 9 - Riverside

ATCL – Los Angeles

TCS - Plantation

Technical Guidance

Tax Policy & Procedure

Collection & Processing

Tax Policy & Procedure

Exam, TE/GE,& ADR

Processing

Director,

International

Deputy Chief, Appeals

Appeals Organization Chart

OFFICE OF APPEALS

D.C.

Washington

Oregon

Northern

California

Nevada

Idaho

Montana

Wyoming

Utah

Arizona

Colorado

New Mexico

Texas

Oklahoma

Kansas

Nebraska

Arkansas

Louisiana

Georgia

South

Carolina

North CarolinaTennessee

Virginia

South Dakota

North DakotaMinnesota

Iowa

Missouri

Illinois

WisconsinMichigan

Indiana

Ohio

WV

Pennsylvania

New York

Maine

VTNH

MA

NJ

CT

MD

Area 1

Area 3Area 7

Area 8

Southern

California

FRC

Campus

OGC

Campus

Area 3

PHC Campus

MEC Campus

CIC

Campus

Area 9

Alaska

Hawaii

DE

RI

Area 2: Collection

(all Collection cases

from Areas 1, 3, 4)

Appeals Field Operations

OFFICE OF APPEALS 6

Our Employees – Appeals Officers

Appeals

Officers

Field Campus

Average Years of

Service 28 24

OFFICE OF APPEALS 7

Our Employees – Settlement Officers

Settlement

Officers

Field Campus

Average Years of

Service 25 20

OFFICE OF APPEALS 8

Guiding Principles and Core Values

• Independence

– Objectively assess facts/evidence

– Develop fair & impartial settlement offer

• Ex Parte Communications

• Getting the right work to the right employee

at the right time to get the right decision

• Collaboration and Feedback

• Innovation and Creativity

OFFICE OF APPEALS 9

Types of Cases in Appeals

• Collection Due Process (lien/levy)

• Offer–in–Compromise

• Innocent Spouse

• Penalty Appeals

• Coordinated Industry Cases

• Industry Cases

• Examination (non-LMSB), 30 day letters &

docketed

• Other (CAP, TFRP, FOIA, etc)

OFFICE OF APPEALS 10

Types of Cases in Appeals

• Examination

– Audits

– Claims for Refund/Abatement

– Post-assessment Penalty Appeals

• Docketed Cases

• Collection

– Collection Due Process

– Collection Appeals Program

– Offers in Compromise

– Trust Fund Recovery Penalty


Sources of Cases

• Generated by Field Compliance

– More complex issues

– Requires more time to resolve

– Complexity drives need for more technically

experienced employee

– Face to face conference

• Generated by Campus Compliance

– Less complex issues

– Requires less time to resolve

– Easily resolved through correspondence or by

telephone

– Taxpayer requests Face to Face Conference


Offering a Fresh Look …

• Supports an administrative dispute

resolution process

• Supports a dispute resolution process that is

separate and independent from Compliance

• Supports the joint goals of the government’s

need for an efficient tax system and the

taxpayer’s need to have their case fairly and

impartially considered without having to go

to court


The Appeals Process

• Compliance forwards a complete

administrative case file

• Case is received by Appeals

– Assigned by Appeals Team Manager to an

Appeals employee

– “Welcome to Appeals” letter issued

– Appeals brochure

• Quality review of case file by Appeals

employee assigned the case


The Appeals Process (cont’d.)

• Appeals employee considers

– Facts,

– Quality of information provided by taxpayer & in case file

– Tax Law

– Treasury Regulations

– Case Law

– Revenue Rulings, Revenue Procedures, and other technical

guidance

• Appeals employee honors the prohibition against ex

parte communications

• Communications with taxpayer

– Correspondence

– Telephone

– Face to face conference


The Appeals Process (cont’d.)

• Settlement considerations

– Settlement authority

– Hazards of litigation

• Negotiations complete

– Fair, Impartial

• Tax Calculations

• Managerial review

• Implementation of final resolution

• Case closed from Appeals


Alternative Dispute Resolution

• Early Referral

• Fast Track Mediation (SBSE)

• Fast Track Settlement (LMSB, SBSE {select cities} &

TEGE)

• Post-Appeals Mediation

• Arbitration



• http://www.irs.gov/individuals/article/0,,id=96

779,00.html

• Publication 4167 Appeals – Introduction to



Ex Parte Communication

Basic Definition: One side only; by or for one

party; done for or on behalf of one party

only

Judicial Use: A ex parte activity is an order,

injunction, or other judicial proceeding or

communication taken or granted for the

benefit of one party without notice to or

contest by any person with an adverse

interest.


Independence of Appeals

• Careful blend of working effectively with

Compliance in the overall interest of sound tax

administration, and

• Remaining independent of Compliance functions

in order to make decisions that are fair and

impartial to both the Government and the

Taxpayer.


Section 1001 (a) of RRA 98

“(4) Ensure an independent appeals function

within the Internal Revenue Service , including

the prohibition in the plan of ex parte

communications between appeals officers and

other Internal Revenue Service employees to

the extent that such communications appear to

compromise the independence of the appeals

officers”



Ex Parte Communications

All communications that take place

between Appeals and another IRS

function without the participation of

the taxpayer or representative.


Applies to All Types of

Communications

• Oral

• Written – Manual or Computer



Rev Proc 2000-43

• Prohibit certain communications between

Appeals & another Service function

•Without participation of taxpayer

•To extent such communications appear to

compromise the independence of Appeals



Rev Proc 2000-43

• No prohibition on communications:

•Ministerial matters

•Administrative matters

•Procedural matters

•That do not address the substance of issues

in case



Rev Proc 2000-43

• Taxpayer may elect to waive ex parte

prohibition



Prohibited Communications

•Accuracy of facts presented by taxpayer

•Relative importance of the facts to

determination

•Relative merits or alternative legal

interpretations of authorities cited in protest or

in report prepared by originating function

•Originating function’s perception of the

demeanor or credibility of taxpayer



Prohibition on Communications

•Applies to pre-conference meetings between Appeals

& Compliance

•Does not apply to post-settlement conference between

Appeals & Compliance

•Does not apply in context of industry wide Technical

Guidance coordination meetings, meetings of

Compliance Councils or Policy Boards

•Does not apply to communications between Appeals &

the Commissioner



Prohibition on Communications

•Applies to communications between Appeals and IRS

attorney who participated in the development of the

disputed issue

•Does not apply to docketed cases



•Publication 556 Examination of Returns, Appeal

rights, and Claims for Refunds

Resources

www.IRS.gov/Appeals

Documents

Introduction to Appeals - CTEA - Capital of Texas Enrolled …€¦ · · 2009-11-06Chief Counsel Chief, Appeals National Taxpayer Advocate Chief Financial Chief Human Capital Officer