Modernization in Appeals.

• Author: Dougherty, James A.
• Position: Tax appeals

The mission of the IRS Appeals is to resolve tax controversies without litigation in a fair and impartial manner. In fiscal year 1992, Appeals closed 74,000 cases, of which about 88% were agreed settlements. The Appeals's settlement authority is very broad. When there is a tax dispute, Appeals is the place to come for resolution. Its staff has the training and expertise to take a fresh look at a case, evaluate its facts and merits, and use good judgment in weighing everything relevant to arrive at a fair settlement.

Appeals is bound by the Internal Revenue Code, regulations and Service Positions favorable to the taxpayer. If the Service position is unfavorable to the taxpayer, the Appeals can settle via an alternative dispute resolution (ADR). Most tax controversies are still resolved as a result of negotiation in an Appeals conference. Very few are litigated - only about 1,500 in any given year.

While innovative IRS programs can help any taxpayer, the "big" money also comes to Appeals. As of Dec. 31, 1992, the approximately 460 "large cases" in inventory involved over $40 billion in disputed liability. While large cases represent less than 1% of the 60,000 cases in Appeals, they represent over 80% of the total amount of liability in dispute.

For years, tax practitioners and the IRS have met to ask questions, obtain answers and discuss problems. For many years, the same questions seemed to arise, and the same answers were given. Now, times are changing and Appeals is in the vanguard. Instead of explaining the way the system works in response to inquiries, Appeals wants to review its systems to see how they can work better for practitioners and their clients.

Prime examples of this proactive thinking are underway within the Appeals organization. Many modernization efforts have been implemented or are being tested in different parts of the country right now. Appeals is moving on many fronts to improve customer service and reduce the burden on taxpayers.

The Appeals

Customer Service Program

The Appeals Customer Service Program began as a "pilot" in the Denver Appeals Office. The program began with the dual goals of improving the information that taxpayers receive about the appeals process and providing assistance in getting through the process.

The Appeals Service Representative (ASR) assists with problems that might delay getting a case to Appeals after the Service's tax examiner and the taxpayer disagree, answers taxpayer questions about filing protests, responds to questions on the appeals process in general and assists with problems that might delay case closure. Taxpayers are sent a flyer about the program with the examination report that proposes adjustments to their tax liability. The flyer includes the name and telephone number of the ASR.

The Pilot was so successful that the program was expanded to at least one Appeals office in every region during fiscal year 1993. This program demonstrates Appeals's responsiveness to taxpayer needs, thus improving customer satisfaction and reducing the burden on taxpayers.

The participating Appeals offices, ASRs and their telephone numbers are listed by region:

* Central: Cleveland Appeals Office, Denise Neidermeyer, (216) 522-2981.

* Mid-Atlantic: Newark Appeals Office, Ellen Wassong, (201) 645-6280.

* Midwest: St. Paul Appeals Office, Nancy Janssen, (612) 290-3860.

* North Atlantic: Long Island Appeals Office, Lawrence Ostrow, (516) 539-6222.

* Southeast: Jacksonville Appeals Office, Sandra Taylor, (904) 232-2363.

* Southwest: Denver Appeals Office and Cheyenne Sub-Office, Marianne Hudson...