October 2008
Introduction Introduction to Appealsto Appeals
Introduction Introduction to Appealsto Appeals
2OFFICE OF APPEALS
AppealsAppeals
Founded
In 1927, the IRS established an administrative appeal process to resolve tax disputes without litigation.
Restructuring and Reform Act of 1998
Specifies that the IRS reorganization plan must “ensure an independent appeals function within the Internal Revenue Service, including the prohibition in the plan of ex parte communications…”
Section 1001(a)(4).
Mission
Resolve tax controversies, without litigation, on a basis which is fair and impartial to both the government and the taxpayer and in a
manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.
3OFFICE OF APPEALS
Commissioner
Chief of Staff
Deputy Commissioner
Operations Support
Acting Commissioner,Small Business/ Self-Employed
Chief Information Officer
Chief Counsel
Chief, Appeals
National Taxpayer Advocate
Chief Financial Officer
Chief Human Capital Officer
Chief,Agency-Wide
Shared Services
Commissioner,Wage and Investment
Commissioner,Large and Mid-Sized Business
Commissioner,Tax Exempt and
Government Entities
Chief,Criminal
Investigation
Chief, EEO and Diversity
Chief, Communications and Liaison
Director, Office of Professional
Responsibility Deputy CommissionerServices and Enforcement
Director, Research, Analysis, and Statistics
Director, Whistleblower Office
Director, Office of Privacy, Information Protection & Data
Security
IRS Organization ChartIRS Organization Chart
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Chief, Appeals
Director, EEOD (AWSS) Director, Art Appraisal Services
Director, Communications
Director, Strategy and Finance
Strategic Planning/ Measures Analysis
Management and Administration
Finance
Business Systems Planning
Appeals Quality Measurement System
Learning & Education
Director, Technical Services
Director, Field Operations – East
Area 1 - Manhattan
Area 2 - D.C. (Collection)
Area 3 - Nashville
Area 4 - Philadelphia
Director, Field Operations – West
Area 7 - Houston
Area 8 - San Francisco
Area 9 - Riverside
ATCL – Los Angeles
TCS - Plantation
Technical Guidance
Tax Policy & ProcedureCollection & Processing
Tax Policy & Procedure Exam, TE/GE,& ADR
Processing
Director, International
Deputy Chief, Appeals
Appeals Organization ChartAppeals Organization Chart
OFFICE OF APPEALS
D.C.
Washington
Oregon
Northern California
Nevada
Idaho
Montana
Wyoming
Utah
Arizona
Colorado
New Mexico
Texas
Oklahoma
Kansas
Nebraska
Arkansas
Louisiana
Alabam
a
Mississippi
Florida
Georgia
SouthCarolina
North CarolinaTennessee
Kentucky
Virginia
South Dakota
North DakotaMinnesota
Iowa
Missouri
Illinois
WisconsinMichigan
IndianaOhio
WV
Pennsylvania
New York
Maine
VTNH
MA
NJ
CT
MD
Area 1Area 1
Area 4Area 4Area 7 Area 7
Area 8Area 8
Southern California
FRC Campus
OGC Campus
Area 3 Area 3
PHC Campus
MEC Campus
BRC Campus
CIC Campus
Area 9Area 9
Alaska
Hawaii
DE
RI
Area 2: Collection(all Collection cases from Areas 1, 3, 4)
Area 2: Collection(all Collection cases from Areas 1, 3, 4)
Appeals Field OperationsAppeals Field Operations
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Guiding Principles and Core ValuesGuiding Principles and Core Values
• Independence and Ex Parte• One Appeals• Getting the right work to the right employee
at the right time to get the right decision• Collaboration and Feedback• Innovation and Creativity
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How Does Taxpayer Get to Appeals?How Does Taxpayer Get to Appeals?
• Collection Due Process (lien/levy)• Offer–in–Compromise• Innocent Spouse • Penalty Appeals• Coordinated Industry Cases• Industry Cases • Examination (non-LMSB)• Other (CAP, TFRP, FOIA, etc)
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Types of Case in AppealsTypes of Case in Appeals
• Examination– Audits– Claims for Refund/Abatement– Post-assessment Penalty Appeals
• Collection– Collection Due Process– Collection Appeals Program– Offers in Compromise– Trust Fund Recovery Penalty
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Sources of CasesSources of Cases
• Generated by Field Compliance – More complex issues– Requires more time to resolve– Complexity drives need for more technically
experienced employee
• Generated by Campus Compliance – Less complex issues– Requires less time to resolve– Easily resolved through correspondence or by
telephone
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Offering a Fresh Look …Offering a Fresh Look …
• Supports an administrative dispute resolution process
• Supports a dispute resolution process that is separate and independent from Compliance
• Supports the joint goals of the government’s need for an efficient tax system and the taxpayer’s need to have their case fairly and impartially considered without having to go to court
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The Appeals ProcessThe Appeals Process
• Compliance forwards a complete administrative case file
• Case is received by Appeals– Assigned by Appeals Team Manager to an
Appeals employee – “Welcome to Appeals” letter issued
• Quality review of case file by Appeals employee assigned the case
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The Appeals Process (cont’d.)The Appeals Process (cont’d.)
• Appeals employee considers – Facts – Tax Law– Treasury Regulations– Case Law – Revenue Rulings, Revenue Procedures, and other
technical guidance
• Appeals employee honors the prohibition against ex parte communications
• Communications with taxpayer– Correspondence– Telephone– Face to face conference
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The Appeals Process (cont’d.)The Appeals Process (cont’d.)
• Settlement considerations– Settlement authority– Hazards of litigation
• Negotiations complete– Fair– Impartial
• Managerial review
• Implementation of final resolution
• Case closed from Appeals
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Alternative Dispute ResolutionAlternative Dispute Resolution
• Early Referral
• Fast Track Mediation
• Fast Track Settlement
• Post-Appeals Mediation
• Arbitration
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Our Employees – Appeals OfficersOur Employees – Appeals Officers
Appeals Officers
Field Campus
Average Years of Service 28 24
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Our Employees – Settlement OfficersOur Employees – Settlement Officers
Settlement Officers
Field Campus
Average Years of Service 25 20