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8.6.1.6
(11-06-2007)
New Issues and Reopening Closed Issues
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Policy Statement P–8–2 (formerly P-8-49) states when an issue is agreed to by the taxpayer and IRS, it cannot be reopened
by Appeals; specifically, a new issue is not raised unless there are substantial grounds for the action and potential tax
effect is material.
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It is the duty and responsibility of the Appeals employee to conduct settlement negotiations in a manner which fosters confidence
of taxpayers and/or their representatives in the fairness of the IRS. There is no greater need for diplomacy, caution, and
sound judgment in Appeals than when raising a new issue, or reopening an issue where the taxpayer and IRS Compliance are in
agreement.
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Policy Statement P–8–3 (formerly P-8-50) states the policy of the IRS concerning the reopening of cases previously closed
by Appeals. The following explains references contained within this Policy Statement:
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Reference to a case closed on a basis of concessions made by both Appeals and the taxpayer, means a non-docketed case closed
by a Form 870-AD type of agreement.
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Reference to a case closed on a basis not involving concessions made by both Appeals and the taxpayer, means a non-docketed case closed by other than a Form 870–AD type of agreement.
For example: A case closed by Form 870 or similar form, or closed by reason of failure of the taxpayer to file a timely petition
with the United States Tax Court following issuance of a statutory notice of deficiency by Appeals, or an excise or employment
tax case closed without agreement as to the assessment.
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Reference to a serious administrative omission regarding non-mutual concession cases includes criticism of an issue by the
Joint Committee.
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Under Policy Statement P-8-2, no approval is required to reopen previously closed cases in the following situations:
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To allow carrybacks provided by law which were not taken into account in a prior closing.
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To assess an excessive portion of a tentative allowance.
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To adjust matters previously reserved by the Government or by the taxpayer in an agreement. See IRM 8.6.4, Conference and
Settlement Practices, Reaching Settlement and Securing an Appeals Agreement Form.
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See IRM 8.7.7, Claim and Overassessment Cases, for procedures in cases where the taxpayer files a claim for refund in a case
previously closed by Appeals.
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