IRS revises procedures for handling appeals conferences.

• Author: Ng, Frank

On Aug. 24, 2016, the IRS issued revised procedures relating to Appeals "Conference and Issue Resolution" under Internal Revenue Manual (IRM) Section 8.6.1. Appeals has indicated that the revised procedures are driven by a desire to clarify its procedures for taxpayers, to better allocate IRS resources, and to get the right work to the right Appeals employee. Appeals also has stated that face-to-face meetings with taxpayers are not practical to resolve all cases and that 87% of cases are handled over the phone. The changes went into effect Oct. 1, 2016.

The IRM revisions eliminate prior procedures related to transfers of cases for the convenience of the taxpayer and transfers of cases within Appeals. The revisions reflect the fact that most Appeals conferences are conducted by telephone and specify that a telephonic, rather than an in-person, conference will be first offered to taxpayers (IRM [section] 8.6.1.4.1, [paragraph] (2)). If a taxpayer declines the invitation for a telephonic conference and requests an in-person conference, a virtual conference should be offered as the next best alternative (IRM [section] 8.6.1.4.1, [paragraph] (3)). If a taxpayer declines the virtual conference alternative, the Appeals team manager has the sole discretion to determine whether to allow an in-person conference.

In deciding when an in-person conference is appropriate, the team manager is instructed to consider the following facts and circumstances (IRM [section] 8.6.1.4.1, [paragraph] (4)):

1. Whether there are substantial books and records to review that cannot be easily referenced with page numbers or indexes;

2. Whether an in-person conference is necessary to judge the credibility of the taxpayer's oral testimony;

3. Whether the taxpayer has special needs that can only be accommodated with an in-person conference;

4. Whether there is a risk of an unauthorized disclosure or breach of confidentiality due to numerous conference participants;

5. Whether an alternative conference procedure (e.g., Post Appeals Mediation or Rapid Appeals Process) involving separate caucuses will be used; and

6. Whether another IRM section calls for an in-person conference.

Revised IRM Section 8.6.1.4.2 states that an assigned Appeals technical employee will refer a taxpayer directly to the team manager to discuss any concern the taxpayer raises about the technical employee, including questions about perceived (lack of) impartiality, as well as any request to have the case...