If you decide to appeal the findings of the IRS examiner, here’s what you should expect.
It takes LMSB many weeks to transmit the file to the appropriate Appeals Office. At the time of filing the protest, you can request an office that is convenient to you!
When received in Appeals, the office guideline calls for your request for a hearing be acknowledged within 60 days. At the end of the third quarter of 2011, Appeals had 148,327 assigned cases. Is it any wonder it takes a while to get to your case?
Use the time wisely. Only once in my career have I received this call, “We have reviewed your most complete and articulate protest, and the Government concedes.” The other 99.9% of the time you will receive a letter or call to schedule your first appointment.
Use the interim time to prepare. If for some reason you were not able to present all the facts to the Agent, now is the time to add to the presentation.
Start considering a reasonable settlement. You should have one that doesn’t kill you and your business while at the same time the Appeals Officer can look at and say, “That’s seems fair to the government”.
National Chief of Appeals Chris Wagner is fighting hard to reduce the cases in inventory. Let’s see what we can do to help him.
Jim Casimir, Founding Partner of Casimir Consulting, has announced that Thomas C. Louthan has joined the firm as a consultant and Director.
While Director of Alternative Dispute Resolution Programs at the IRS, Tom pioneered mediation and arbitration programs for IRS Appeals to resolve tax disputes without litigation. He also founded the IRS Appeals international program and directed a nationwide network of Appeals International Specialists.
As Director, Strategic Planning & Communications, Tom was responsible for the IRS Appeals organization’s strategic plans. At the U.S. Senate Finance Committee, Tom was a Legislative Fellow with Chairman Max Baucus, D-Mont, and the Government Affairs Institute, Georgetown University. He was responsible for IRS tax administration legislative initiatives including voluntary compliance for Examination, Collection, and Appeals. Tom is an expert on proposals to reform the U.S. international tax system.
Tom earned a Legislative Certificate from Georgetown University, Government Affairs Institute and a Juris Doctor degree from Widener University School of Law; he is admitted to the New York Bar. He has published numerous articles on alternative dispute resolution in a number of prominent tax publications. Tom’s specialty at Casimir Consulting is finding simple solutions to complex situations.
In 1991, as Director of Appeals, I introduced the concept of mediation to Appeals. Now, after only 20 years, the concept has been expanded to include most of the disputes before Appeals.
It is a real opportunity to have someone who is not a party to the dispute to weigh in on the decision. We have been very successful in the use of mediation. Mediation is the first time the in the life cycle of a dispute that someone not working for the client or the government will help in the resolution.
Types of disputes which qualify for mediation:
-Examinations (audits)
-Offers in compromise
-Trust fund recovery penalties
-Other collection actions (for example, certain qualifying collection due process cases)
We recently instructed at the Grant Thornton continuing education session at their training headquarters in St. Charles, Illinois. The entire training was about FIN 48.
We have materials and expertise to help companies determine the probable outcome at IRS of reserve items. Our documented involvement would also show the SEC the effort exerted by the company to “get it right!”