Appeals NOTICE. ALI CLE - Handling a Tax Controversy: Audit, Appeals, Litigation and Collections October 8-9, 2015

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1 205 Appeals ALI CLE - Handling a Tax Controversy: Audit, Appeals, Litigation and Collections October 8-9, 2015 NOTICE The following information is not intended to be written advice concerning one or more Federal tax matters subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. 1

2 206 Panelists Thomas Greenaway KPMG LLP Boston, MA Steve T. Miller alliantgroup, LP Houston, TX 2 Thomas Greenaway KPMG LLP Boston, MA Tom Greenaway s practice covers all areas of tax controversy representation before the IRS, from examination through post-appeals dispute resolution, with an emphasis on international tax controversy. Tom also works with firm clients on other matters, including general tax consulting, regulatory ruling requests, voluntary disclosures, closing agreements, and compliance agreements. Before joining KPMG, Tom practiced as a senior attorney in the Large & Midsize Business division of the IRS Office of Chief Counsel. While with the Office of Chief Counsel, Tom served as U.S. Counsel to the Joint International Tax Shelter Information Centre (JITSIC). Tom is an active member of the American Bar Association Tax Section. Tom is also active in the Boston Bar Association, where he just completed a term as a co-chair of the Tax Section. 3

3 207 Steve T. Miller alliantgroup, LP Houston, TX Steve Miller is the National Director of Tax at alliantgroup, a tax consultancy firm. He specializes in tax planning and tax controversy at all levels. In a career devoted to government service, Mr. Miller spent 25 years with the IRS, serving the agency in a number of diverse and increasingly important roles. He served as IRS Acting Commissioner in 2012, but prior to that served for several years as the Deputy Commissioner for Services and Enforcement, leading virtually all IRS taxpayer facing functions from the examination function to return processing. He also served as the Commissioner of the Large and Mid-Size Business Division (predecessor to LB&I), overseeing IRS audits of large taxpayers and the IRS programs relating to offshore tax compliance and international tax law enforcement. As the Commissioner of the Tax Exempt and Government Entities Division, he supervised the IRS oversight of governments, tax exempt entities and retirement programs. Prior to that time Mr. Miller held positions in the IRS Office of Chief Counsel and as Legislation Counsel on the Congressional Joint Committee on Taxation. 4 The Mission of Appeals The mission of Appeals is to 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. IRM (1) ( ). Appeals seeks to accomplish its mission by considering protested cases, holding conferences, and negotiating settlements. IRM 8.1.1(2) ( ) 5

4 208 Established Objectives of Appeals A prompt conference and prompt decision in each case Advising taxpayer of the Service s final decision as to the amount of tax liability or other issue in contention, and collecting additional revenue involved at the earliest practicable date. A high-quality decision in each case Representing judicious application of Service policy and sound legal principles. A satisfactory number of agreed settlements Settling cases on a basis fair to the Government and the taxpayer while resolving the greatest possible number of cases prior to litigation. Independence Congress ordered IRS to ensure an independent appeals function within the Internal Revenue Service, including the prohibition of ex parte communications... IRS Restructuring & Reform Act of 1998, P.L , 112 Stat. 695, 1001(a). 6 Appeals Case Data* Total Appeals Cases Received 115, , , , , , ,608 Total Appeals Cases Closed 106, , , , , , ,472 Year-End Appeals Case Inventory 59,899 72,002 72,779 76,633 66,293 59,346 57,373 *Based on fiscal year from October 1 through September 30. Source: IRS. 7

5 209 Appeals Types of Cases Income, estate, gift, employment and excise taxes Collection due process Collection appeals program Offers-in-compromise Trust fund recovery penalty Penalty appeals Abatement of interest Innocent spouse Administrative costs under IRC 7430 Jeopardy levies Recommendations concerning settlement offers in refund suits IRC 534(b) letters Refund claims including Joint Committee cases Overassessments where taxpayer appeals decision of compliance area director, or a campus director 8 IRS Appeals Cases Pending, as of 9/30/14 Collection Due Process Penalty Appeals Innocent Spouse Coordinated Industry Cases Examination Offers in Compromise Industry Cases Other 9