The IRS appeals process: case method and tax clinics.

• Author: Bauman, Christine

To familiarize graduate tax students with the IRS Appeals process, faculty can make use of both case method and tax clinics. These two teaching tools educate students about the real world of handling cases before the Service. Because an understanding of the Appeals function is critical in settling a tax case, students benefit from the practical experience received during their graduate programs.

Case Method

Appeals plays a significant role in the protection of taxpayer rights, as it has the authority to settle disputes between taxpayers and operating divisions within the Service. It offers taxpayers a final administrative opportunity to resolve tax matters before proceeding to the judicial process. As a teaching tool, the case method allows students to appreciate the effort that Appeals puts toward compromise when settling cases. For several years, Appeals officers have assisted faculty in the development of cases used to familiarize graduate tax students with IRS practice and procedures. On request, Appeals officers have willingly and enthusiastically participated.

In a typical case, students write a protest, perform electronic tax research and discuss positions with an Appeals officer. To complete a case assignment, students receive a Revenue Agent Report (30-day letter), a copy of an examiner s report, IRS Pub. 5, "Your Appeals Rights and How to Prepare a Protest If You Don't Agree" and a list of case requirements. Cases cover a variety of topics.

Case facts are taken from actual IRS examinations and subsequent appeals. Faculty alter cases significantly to meet educational needs. At the same time, cases are typical situations in which an IRS Examiner and a taxpayer argue exclusively about the law, settling the case on facts not previously considered. Written protests and mock appeals hearings improve students' skills in written and oral communication, negotiation and critical thinking. They also help students to develop professional confidence.

For case resolution purposes, faculty encourage students to look for a compromise rather than a victory. Their goal is to help students to be creative in developing the facts, while, at the same time, not contradicting them. Cases are either "close-ended" (which includes information on relevant primary authority) or "open-ended" (in which students locate relevant. authority). Most students prefer open-ended cases.

During mock appeals hearings, faculty evaluate students on their ability to present...