8.4.2. Campus Appeals Docketed Cases

(1) This IRM provides guidance and information to assist Campus Appeals ATEs and ATMs in meeting the Appeals mission when working docketed cases.

(2) As stated in IRC 7803(e)(3), Purposes and Duties of Office, the Appeals mission is to resolve federal tax controversies without litigation on a basis that is fair and impartial to both the government and the taxpayer, promotes a consistent application and interpretation of, and voluntary compliance with, the federal tax laws, and enhances public confidence in the integrity and efficiency of the IRS.

(3) Appeals accomplishes its mission by considering protested and Tax Court-docketed cases and negotiating settlements in a manner that ensures Appeals employees are familiar with and follow the Taxpayer Bill of Rights (TBOR) in every interaction with taxpayers.

(4) The TBOR lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

(1) Rev. Proc. 2016-22, which supersedes Rev. Proc. 87-24, describes the general process for handling cases docketed before the United States Tax Court.

(1) The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

(1) Policy, Planning, Quality and Analysis (PPQA) provides trend and data analyses and detailed summary reports for Appeals.

(1) See IRM Exhibit 8.1.1-1, Common Terms Used in Appeals, for common terms and definitions used in IRM Part 8. Terms listed in the exhibit are not included in this section.

(2) The following table lists commonly used acronyms and their definitions for relevant terms used in this IRM:

(1) IRM 8.4.1, Procedures for Processing and Settling Docketed Cases, is the primary source of guidance to all ATEs and ATMs on working docketed cases. Many of the same procedures covered in IRM 8.4.1 apply to docketed cases worked by Campus Appeals offices. The text of IRM 8.4.2 focuses on assisting Campus ATEs and Campus ATMs with special procedures that apply exclusively to Campus Appeals offices. The text of this IRM contains various references to assist Campus employees who work docketed cases.

(1) The Appeals office "administrative file location" is distinguished on TLCATS by a three-character code that begins with the letter "A" followed by a two-digit Appeals Office Code (AOC). The code appears in the "ADM FILE LOC" field.

(2) All offices performing TLCATS research are able to identify the Campus Appeals office by the following codes:

(3) The administrative file location is updated by TLCATS operators when the administrative file location changes and Field Counsel receives notification of the change in location from Appeals.

(1) Use a mail delivery system that both tracks the movement of cases sent between Appeals and Field Counsel and ensures the files are received timely by Field Counsel when case movement is time-sensitive.

(2) Overnight mail is generally costly and difficult to arrange at Campus Appeals offices. But it may be necessary to use this mailing option for time-sensitive mailings. Most arrangements for case delivery should be discussed and mutually agreed to by Counsel and Appeals.

(3) The administrative files for Campus Appeals cases are retained by each Campus Appeals office. Unless specifically requested by the Field Appeals office or Field Counsel, administrative files are only forwarded to them for the following reasons:

1. The Campus Appeals office, upon initial review of the file, identifies a jurisdictional issue that needs to be resolved by Field Counsel. At its discretion, Appeals may contact Counsel by telephone regarding the jurisdictional issue to determine if the issue can be resolved. If the issue is not resolved by telephone, the file is sent directly to Field Counsel. Upon completion, Field Counsel sends the administrative file back to the Campus Appeals office for consideration or closing.

2. Field Counsel determines they require an administrative file, either because a jurisdictional issue is present or other legal proceedings are required. Field Counsel requests the administrative file be forwarded to them by traceable method and informs Appeals whether they expect to return the administrative file for consideration or dismiss the case and return it for closing. Appeals forwards the file upon request. Upon completion of the required action, Field Counsel sends the administrative file back to the Campus Appeals office for consideration or closing.

3. The case is unagreed and is being forwarded for "trial preparation." The file is sent directly to Field Counsel via a mail delivery system that tracks the movement of the case and ensures delivery by the relevant deadline set forth in Rev. Proc. 2016-22 (described in the Reminder following paragraph (2), above). Upon completion, the Field Counsel office sends the administrative file back to the Campus Appeals office for closing. If a local Field Appeals office needs to get involved in the case, see IRM 8.4.2.6.1, Reconsideration by Field Appeals.

4. Field Counsel is responsible for preparing the decision documents. The Campus Appeals office sends the administrative file to Field Counsel along with: a copy of Form 5402, Appeals Transmittal and Case Memo; the Appeals Case Memo (ACM), if prepared in addition to Form 5402; a Statement of Account (SOA) (if required); a current transcript; and an interest computation (if applicable). See IRM 8.17.3.2, Explanation of the Statement of Account, for the requirements for preparing a Statement of Account.

   Note: Account and Processing Support (APS) should ensure that the case is closed using the proper Appeals Centralized Database System (ACDS) closing code: 08, Docketed Agreed, Appeals Secured Agreement.

(1) In situations where the Campus Appeals office forwards a case to Field Counsel for "trial preparation" and, subsequently, the petitioner or counsel of record desires to discuss "settlement," the local Field Appeals office:

1. is responsible for any "reconsideration" activities, and

2. conducts the settlement negotiations.

(2) If the local Field Appeals office receives a case from Field Counsel for "reconsideration," the local Field Appeals office must ensure that the ACDS and AIMS databases are transferred to them.

(1) Workload transfers must be mutually agreed upon by the affected Appeals Area Directors.

(2) Workload transfers can be identified on ACDS by a "W" in the ACTION field on the transferring office's closing code 30 record, or by a "W" in the LOC4 field on the receiving office's record.

(3) The receiving office must not change the original assigned date.

(1) The Campus Appeals office prepares simple settlement documents using the format approved by Counsel. In complicated settlements, Appeals may ask Counsel to prepare the settlement documents.

(2) Field Counsel prepares all other settlement documents for the Campus Appeals office. Typically, the following simple settlement documents are prepared by the Campus Appeals office:

• Deficiency in Income Tax (Simple Stipulated Decision)

• Deficiency in Income Tax with Penalties and/or Additions to Tax

• No Deficiency and No Overpayment

(3) For cases where Field Counsel is responsible for preparing the decision documents, the Campus Appeals office sends the administrative file to Field Counsel along with: a copy of the Form 5402, Appeals Transmittal and Case Memo; the Appeals Case Memorandum (ACM), if prepared in addition to Form 5402; the Statement of Account (SOA) (if required); a current transcript; and an interest computation (if applicable). See IRM 8.17.3.2, Explanation of the Statement of Account, for the requirements for preparing a Statement of Account.

(4) Interest on the balance due is computed out at least 60 days. APS uses the ACDS action code PREPSTIP to reflect cases where Field Counsel is responsible for preparing the decision documents. Field Counsel will:

1. Prepare the settlement documents,

2. Secure signature from the petitioner or counsel of record,

3. File the decision documents with the Tax Court, and

4. Return the administrative file and the entered decision to the Campus APS Unit for closing and assessment promptly after the decision documents are entered with the Tax Court.

   Note: APS should ensure that the case is closed using the proper ACDS closing code: 08, Docketed Agreed, Appeals Secured Agreement.

(1) In situations where a Campus ATE reaches a "basis for settlement," and the Appeals office mails the decision document to the petitioner or counsel of record under the Docketed EZ Close process but the signed settlement documents are not received by Counsel, the assigned Field Counsel attorney or paralegal will contact the petitioner or counsel of record to attempt to secure the decision documents. If Counsel cannot secure executed decision documents from the petitioner or counsel of record, Counsel will contact APS to request the administrative file to begin preparing for trial.

(2) If Field Counsel secures the signed decision documents prior to trial, they file the documents with the Tax Court and promptly return the administrative file (if in Counsel’s possession) and the entered decision to the Campus Appeals office for closing and assessment. The Field Counsel checks the "Settlement by Appeals" box on transmittal Form 1734, Transmittal Memorandum.

(3) APS should ensure that the case is closed using the proper ACDS closing code: 08, Docketed Agreed, Appeals Secured Agreement.

(1) Good communication is imperative to the success of the Campus Appeals office docketed case program.

(2) If questions arise regarding cases, the Associate Area Counsel in the Field Counsel office and the Campus ATM should contact each other by telephone or email. To the extent possible, they respond the day the communication is received. At a minimum, a response is made by the close of the next business day.