Early referral requests.

• Author: Goca, Neil P., III
• Position: IRS appellate procedure

Rev. Proc. 99-28 advises taxpayers how to request early referral to IRS Appeals. This procedure is effective for requests filed after July 19, 1999.

Early referrals aim to resolve cases in a quicker fashion than under normal procedures. There are limitations, however, on the issues eligible for early referral. Issues are limited to the following:

* If resolved, the issues can reasonably be expected to result in a quicker resolution of the entire case;

* When both the taxpayer and the district agree on early referral;

* Issues are fully developed; and

* Issues are part of a case in which the remaining issues are not expected to be completed before Appeals could resolve the early referred issue.

Issues that may not be submitted for early referral include issues:

* For which a 30-day letter has been issued;

* That are not fully developed;

* That Appeals could not expect to resolve before the remaining issues are expected to be completed;

* The Office of Chief Counsel has designated for litigation;

* For which a taxpayer has filed (or intends to file) a request for Competent Authority assistance; and

* That are part of a whipsaw transaction (i.e., one subjected to conflicting claims by taxpayers).

A taxpayer may submit in writing an early referral request to the District's case/group manager. This request must:

* Identify the taxpayer and the tax periods to which those issues relate;

* State each issue for which early referral is requested;

* Describe the taxpayer's position, with a brief discussion of the material facts and an analysis of the facts and law as they apply to each early referral issue; and

* Contain a perjury statement.

On receipt of an early referral request, a case/group manager will, if feasible, notify the taxpayer within 14 days whether it has been accepted or rejected. If the request is denied, the taxpayer may request a conference with the case/group manager's supervisor; however, there is no formal taxpayer appeal action. If approved, the District will complete Form 5701, Notice of Proposed Adjustment. This form will outline the issues and proposed adjustments. This form will be sent to the taxpayer within 30 days after the request is accepted. The...