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Compliance usually forwards all interrelated cases together when sending them to Appeals.

The number of other related cases transferred to Appeals depends upon Compliance's overall objectives and their determination of the desirability of consistent action with respect to the similar or common issue.

In some circumstances, a case may be closed rather than sent to Appeals to be associated with related cases. Ordinarily other related cases are not requested from Compliance unless it appears securing these returns is necessary to produce consistency. If this occurs, the Appeals Officer (AO) contacts the Field Territory Manager to discuss what actions each function will take with respect to the scope of the Service's consideration.

In general, the AO considers small cases on the basis of the record presented and does not request that Compliance develop further evidence, examine other returns, conduct re-examinations, or furnish additional information. This applies to small cases that are classified as interrelated or other related cases.

The AO generally accepts Compliance's determination that adjustments are either not feasible or not required in the related cases. The fact the AO's determination is inconsistent with returns filed or action taken in small related cases, such as where duplicate dependency exemptions are claimed, does not influence the AO's decision in the case. Any resulting action that needs to be taken as a result of the AO's decision on the case is a function of Compliance.

No attempt is made to define the terms "material" and "small cases," since they vary with the factual circumstances. The terms are not interpreted in a narrow or restricted sense, but broadly enough to secure the objectives intended.

If related cases are under concurrent consideration by different Appeals offices, there must be communication between the offices during consideration of the cases to ensure consistent actions are taken.

Circumstances may occasionally require inconsistent positions in interrelated cases where not all of the taxpayers are agreeable to a settlement acceptable to the Government or are unwilling to have their cases considered concurrently by Appeals.