Rev. Proc. 2016-22 Clarifies the Practices for the Administrative Appeals Process in Cases Docketed in the Tax Court

Deloitte’s May 2016 IRS Insights discusses the new Revenue Procedure 2016-22 issued by the IRS, which discusses procedures for consideration by the IRS Office of Appeals of cases docketed in the U.S. Tax Court. The article goes on to summarize several key provisions of Rev. Proc. 2016-22, including:

Under Rev. Proc. 2016-22, the IRS Office of Chief Counsel (“Counsel”), who represents the Commissioner of the Internal Revenue Service in Tax Court, is directed to refer all docketed Tax Court cases to IRS Appeals unless either: (1) IRS Appeals issued the notice of deficiency or made the determination that is being litigated in the Tax Court, or (2) the taxpayer notifies Counsel that it wishes to forego having its case considered by IRS Appeals. If IRS Appeals issued the notice of deficiency or determination without having fully considered all issues because of an impending expiration of a statute of limitations, then IRS Appeals may request that IRS Counsel return the case to it once it has become docketed in the Tax Court. Additionally, Counsel will not refer any docketed case or issue that has been designated for litigation, or in limited circumstances, if it is determined that the referral is not in the interests of sound tax administration. As an example of a situation where referral to IRS Appeals is not in the interest of sound tax administration, Rev. Proc. 2016-22 provides that Counsel may decide not to refer a docketed case to IRS Appeals where there is a significant issue common to other cases where the IRS must maintain a consistent position. If a docketed case or issue is not to be referred to IRS Appeals, Rev. Proc. 2016-22 provides that counsel will notify the taxpayer.

Follow the link to continue reading: IRS Insights

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal

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