New developments: appeals procedures and recent legislation.

• Author: Josephs, Stuart R.
• Position: Fed Tax

An Aug. 24, 2016, Internal Revenue Manual (IRM) transmittal revised Part 8 "Appeals," Chapter 6 "Conference and Settlement Practices," Sec. 1 "Conferences and Issue Resolution," effective Oct. 1, 2016. Below are some of the more significant changes.

Conference Practice

Conferences will be held by telephone, subject to specified exceptions (TRM 8.6, 1.4.1, paragraph (3).

However, if the taxpayer requests an in-person (formerly a face-to-race) conference, the Appeals Technical Employee (ATE) must offer a virtual conference as an alternative when the technology is available (TRM 8.6.1.4.1), paragraph (3).

In addition, under IRM 8.6.1,4.1, paragraph 4, there may be situations in which an in-person conference should be held to help reach resolution. The decision to hold an ill-person conference can be made upon the taxpayer's request or the ATE's suggestion. The Appeals Team Manager (ATM) must concur with tilts decision.

Appeals will consider the following facts and circumstances in malting the decision to hold an in-person conference:

1. There are substantial books and records W review that cannot be easily referenced with page numbers or indices;

2. The ATE cannot judge die credibility of die taxpayer's oral testimony without an in-person conference;

3. The taxpayer has special needs, such as disability or hearing impairment, that can only be accommodated with an in-person conference;

4. There are numerous conference participants, such as witnesses, that create a risk of an unauthorized disclosure or breach of confidentiality;

5. An alternative conference procedure--Post Appeals Mediation or Rapid Appeals Process--involving separate caucuses will be used; or

6. Another IRM section specific to the workstream calls for an in-person conference.

Case Assistance

Under IRM. 8.6.1.4.1.1, the assigned ATE will request case assistance from an assisting ATE who will participate in the in-person conference when the assigned ATE's post of duty:

* Does not accommodate in-person conferences,

* Is not reasonably convenient for the taxpayer or representative; or

* Does not conduct circuit riding

The assigned ATE will lead the conference by telephone and remain responsible for settlement recommendations and case closing

Conference Participation by Other IRS Employees

Under IRM 8,6.1.4,4, Appeals has the discretion to invite Counsel and/or Compliance to the conference. But, the prohibition against ex pane communications must not be violated (Rev. Proc. 2012-18),

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