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8.1.1.2
(10-23-2007)
Appeals Delegation Orders and Policy Statements
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Appeals is the Internal Revenue Service’s dispute resolution forum. The Commissioner granted Appeals authority to consider
and negotiate settlements of Internal Revenue Service controversies. See Delegation Order No. 66, as revised, in IRM 1.2.47,
Delegation of Authorities for the Appeals Process, and Policy Statement P–8–47 in IRM 1.2.1, Policies of the Internal Revenue
Service.
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Delegations of Authority, more commonly referred to as Delegation Orders, place authority in the position(s) where actual
operational responsibility resides. This frees officials from having to consider issues which can be handled at lower levels.
Time and resources are saved when matters are forwarded directly to the designated office rather than to Heads of Office for
action.
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See Exhibit 8.1.1-2. for Delegation Orders applicable to the Appeals' functional authority. See IRM 1.2.2, Delegations of Authority, for an explanation
of the renumbering of delegations of authority and a complete listing of delegation orders broken down by IRM section and
business process.
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Service Policies, commonly referred to as Policy Statements, are major decisions of the Commissioner, Deputy Commissioners,
Chiefs and Directors directly reporting to the Commissioner and Deputy Commissioners, Division Commissioners and/or the National
Taxpayer Advocate, within the framework of basic tax administrative policies of Treasury and Congress. These "Service Policies"
govern and guide Service personnel in the administration of internal revenue laws and do not directly relate to time schedules
or the allocation of funds, staffing, equipment or other resources.
8.1.1.2.1
(10-23-2007)
Some Exceptions to Appeals Authority
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There are certain issues or cases where Appeals may defer action or decline to settle:
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Appeals considers controlled issues subject to the decision of Service officials assigned nationwide responsibility for specific
issues. There is currently one controlled issue. The LMSB Director, Natural Resources, has nationwide jurisdiction for the
issues related to pricing and shipment of foreign produced crude oil and by products. See IRM 8.7.3.8.1 in IRM 8.7.3, Technical
Guidance Programs and Delegation Order 153 as revised.
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Appeals does not settle ISP or other issues designated for litigation by the appropriate Associate Chief Counsel. Generally
the designation for litigation does not preclude settlement of other cases involving the issue or the non-designated issues
in the designated case. See IRM 8.7.3.5, Designation of Coordinated Issue for Litigation.
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Appeals does not settle cases contrary to technical advice memoranda issued by the National Office where the technical advice
memoranda are favorable to the taxpayer, where they concern an organization’s exempt status or private foundation classification,
or where they concern an employee plan’s qualification. See IRM 8.6.3, Appeals Rulings.
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Once the National Office and the taxpayer agree to terms for a change in accounting method and enter into a consent agreement,
Appeals will not change those terms. Only Chief Counsel's office can revoke or modify a consent agreement in the year of change.
If the facts or law changes in a subsequent year, Appeals can change the taxpayer's method to a different method.
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