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More Changes to IRS Appeals, in Response to Taxpayer and Practitioner Concerns

As we have recently discussed, Internal Revenue Service (IRS) Appeals has been making a number of changes to their administrative review process in the last few years. While many of these changes have been driven by lack of resources, others—like the standing invitation of Exam into the Appeals process—have the potential to undermine the independence of Appeals, which has historically been a vital component of the taxpayer’s right of redress with the Service.

In this week’s American Bar Association conference in Austin, Texas, IRS Appeals clarified that, for field cases worked by revenue agents, taxpayers may still receive in-person conferences, despite recent pronouncements that phone conferences are the preferred or default method. Conferences in campus cases (or correspondence audit cases) will still be generally handled by telephone, but there will eventually be a move to in-person conferences by request. Campus cases are being treated differently because they are often managed in locations remote from the taxpayer without adequate facilities for in-person meetings. Guidance will be issued to IRS employees regarding these changes.

As Taxpayer Advocate Nina E. Olson noted, these changes are helpful but not enough. In particular, Olson expressed dismay that campus cases were not being included in the change. Roughly 75 to 80 percent of IRS examinations are conducted by correspondence. In these cases, there is a great need for personal contact with the taxpayer, but no single person within the Service is assigned to a case.

Practice Point: The new announcement provides practitioners with additional support for their requests for in-person Appeals conferences. In our experience, an in-person conference is frequently much more productive than one by phone, and practitioners should request these whenever possible.

© 2017 McDermott Will & Emery

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Laura L. Gavioli, P.C., McDermott Will Emery

Laura L. Gavioli, P.C. is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Dallas office. Laura is a member of McDermott’s U.S. and International Tax Practice Group. She specializes in handling complex civil tax audits, administrative appeals, and litigation. Laura is comfortable and seasoned in the court room, having litigated numerous civil tax cases in U.S. Tax Court and federal district court venues around the country.

Her experience includes significant taxpayer victories in civil tax cases in U.S. Tax...

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Andrew R. Roberson is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Chicago office.  Andy specializes in tax controversy and litigation matters, and has been involved in over 30 matters at all levels of the Federal court system, including the United States Tax Court, several US Courts of Appeal and the Supreme Court. 

Andy also represents clients, including participants in the CAP program, before the Internal Revenue Service Examination Division and Appeals Office, and has been successful in settling tax disputes through the administrative appeals and Fast Track processes.  He has extensive experience in Tax Court practice and procedure, corporate reorganizations, TEFRA, tax accounting and substance/form issues.  Andy is a frequent speaker on tax topics and has authored several articles on tax matters. 

Andy is active in the pro bono community, providing services to low-income individuals in Federal and state tax disputes on issues such as substantiation, deductions and credits, innocent spouse relief and collection matters.  He was recently named 2012 Volunteer of the Year by the Center for Economic Progress.

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Todd Welty P.C., McDermott Will Emery, Certified Public Accountant, Tax Controversy Attorney,
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Todd Welty, P.C. is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s Dallas office. Todd is Co-Chair of McDermott’s Tax Controversy Practice.

Todd’s practice is both national and international in scope. Approximately 95 percent of his professional time is spent on tax controversy and litigation. He represents a broad range of clients including Fortune 100 companies, large non-U.S. multinational companies, closely-held businesses, ultra-high-net-worth individuals and tax advisors – whether they be lawyers or...

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