Introduction to Appeals
October 2008
Appeals
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.
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IRS Organization Chart
Chief Counsel
Commissioner
Chief, EEO and Diversity
Chief of Staff
Director, Research,
Analysis, and Statistics
Chief, Appeals
National Taxpayer
Advocate
Director, Office of
Professional
Responsibility
Director,
Whistleblower Office
Chief, Communications
and Liaison
Deputy Commissioner
Services and
Enforcement
Acting
Commissioner,
Small Business/
Self-Employed
Commissioner,
Wage and
Investment
Commissioner,
Tax Exempt and
Government
Entities
Commissioner,
Large and MidSized Business
Deputy
Commissioner
Operations Support
Chief Information
Officer
Chief Financial
Officer
Chief,
Agency-Wide
Shared Services
Chief Human
Capital Officer
Director, Office of
Privacy, Information
Protection & Data
Security
Chief,
Criminal
Investigation
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Appeals Organization Chart
Chief, Appeals
Deputy Chief, Appeals
Director, EEOD (AWSS)
Director, Art Appraisal Services
Director, Communications
Director,
Strategy and Finance
Director,
Technical Services
Strategic Planning/
Measures Analysis
Management and
Administration
Finance
Business Systems
Planning
Director,
International
Director,
Field Operations – East
Director,
Field Operations – West
Technical Guidance
Area 1 - Manhattan
Area 7 - Houston
Tax Policy & Procedure
Collection & Processing
Area 2 - D.C. (Collection)
Area 8 - San Francisco
Area 3 - Nashville
Area 9 - Riverside
Area 4 - Philadelphia
ATCL – Los Angeles
Tax Policy & Procedure
Exam, TE/GE,& ADR
Processing
TCS - Plantation
Appeals Quality
Measurement System
Learning & Education
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Appeals Field Operations
Alaska
Area 8
Area 3
Area 1
Maine
Washington
North Dakota
Montana
VT
Minnesota
New York
MA
Oregon
Wisconsin
South Dakota
Idaho
CT RI
Michigan
Pennsylvania
Wyoming
Iowa
Northern
California
Nevada
FRC
Campus
NH
Nebraska
OGC
Campus
Utah
PHC Campus
Colorado
Illinois Indiana
NJ
MD DE
Ohio
CIC
Campus
D.C.
WV
Virginia
Kansas
Missouri
North Carolina
Southern
California
Arizona
New Mexico
Tennessee
MEC Campus
Oklahoma
Arkansas
South
Carolina
Georgia
Hawaii
Texas
Louisiana
Area 9
Area 4
Area 7
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Area 2: Collection
(all Collection cases
from Areas 1, 3, 4)
Guiding 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?
•
•
•
•
•
•
•
•
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 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 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 …
• 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 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.)
• 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.)
• 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 Resolution
• Early Referral
• Fast Track Mediation
• Fast Track Settlement
• Post-Appeals Mediation
• Arbitration
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Our Employees – Appeals Officers
Appeals
Officers
Average Years of
Service
Field
Campus
28
24
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Our Employees – Settlement Officers
Settlement
Officers
Average Years of
Service
Field
Campus
25
20
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www.IRS.gov/Appeals