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8.6.2.6
(10-18-2007)
Preparing A Longer Narrative
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Sometimes a brief narrative just isn’t enough. This section shows how to write a longer narrative. The longer narrative may
have as many as four sections:
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Summary and Recommendation - Required
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Brief Background - Use only when necessary
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Discussion and Analysis – Use only when necessary
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My Evaluation - Use only when necessary
8.6.2.6.1
(10-18-2007)
Summary and Recommendation in ACM
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The Summary and Recommendation is the first section of the narrative and is required in all ACMs. It briefly summarizes the
issue and the recommendation so the reader understands the bottom line. It is important to say enough to cover all the most
important matters, yet still be concise enough that the reader doesn’t feel bogged down in details.
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If the issue is simple, this section may be all that is needed. Include a summary and brief analysis of what the taxpayer
and examiner did or said. Also briefly state the rationale for your recommendation. Include what the hazards to the government
are and how they affect the settlement.
8.6.2.6.1.1
(10-18-2007)
The Issue and Your Recommendation in ACM
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Frame the issue as a question to help you focus your discussion. You don’t always have to answer "Yes"
or " No"
. Sometimes your answer may be qualified. But in any case, before you start the discussion, give your reader the answer.
Correctly framing the issue sets up all the discussion that follows. Here are some examples:
8.6.2.6.2
(10-18-2007)
Brief Background Section of ACM
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This is an optional section used to describe anything general to the entire issue. Think of this section as a way to give
just the basic facts to your reader. Save other facts for later, and put them where the reader needs them. Notice that there’s
nothing controversial in the section. It simply says enough to give context for what follows.
Example:
John Sample and Jay Bird incorporated SB, Inc. in October of 1995. Each owned 50% of the corporation. SB Inc. is in the business
of veterinary medicine.
The examiner is completing Jay Bird’s case separately; therefore, it is not associated with this file.
8.6.2.6.3
(10-18-2007)
Discussion and Analysis Section of ACM
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This is your main discussion, so it needs a clear structure. This is also the section of the ACM that you will concentrate
on while preparing a rough draft.
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This section gives the essence of both sides’ contentions, sets out new information provided at the conference, and analyzes
the law and applicable case law arguments. Briefly and clearly present each main point, which will become a heading for a
subsection. In this way, you will have a blueprint for you discussion.
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Present the discussion in an order that is best suited for the issue. Some methods to consider are to:
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Start with the taxpayer’s position if the taxpayer has sufficient arguments of distinguishable point.
Example:
The taxpayer’s husband contends that he paid his wife wages and she performed the work of an employee.
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Begin with a brief paraphrase of the law if the taxpayer does not have specific arguments.
Example:
According to Treas. Reg. section 1.1362-6, for an election to be timely filed, it must be on a completed Form 2553 and be
mailed by March 15th of the year it is effective.
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If the examiner and the taxpayer have presented case law arguments, it is important for you to distinguish the citations,
comparing them and their applicability to the facts of the issue. If you need to analyze an issue or point of law in depth,
give your analysis completely, but without boilerplate or unnecessary verbiage.
8.6.2.6.4
(10-18-2007)
My Evaluation Section of ACM
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Use this section to support the proposed resolution framed in your Summary and Recommendation section. Normally, this section
will be necessary for issues which are:
8.6.2.6.4.1
(10-18-2007)
Unagreed Issues in the ACM
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If the issue is unagreed, focus on the evidence available for presentation as though the case were going to trial. The focus
will be on the probative value of the evidence likely to be presented as proof of a fact.
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The probative value includes the credibility of the testimony of witnesses and the availability of witnesses. It also includes
other doubts as to an issue of fact, such as authenticity and admissibility of documents, records, books, and other writing.
This helps the Counsel attorney both in the discovery process and settlement negotiations. This is also a good place for you
to give Counsel a settlement range.
8.6.2.6.4.2
(10-18-2007)
Resolved based on Hazards of Litigation
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Discuss the various factors that you considered in arriving at your settlement. The reader should understand why your settlement
is appropriate. You should explain the steps you took in your evaluation process as follows
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Summarize the hazards that you identified in the discussion and analysis.
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Weigh their strengths and weakness.
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Determine the relative strengths of opposing positions.
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Convert your verbal evaluation to a percentage or numerical determination.
8.6.2.6.4.3
(10-18-2007)
Factually or Legally Complicated Issues
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Bring together your discussion of factually or legally complicated issues in summary form. In a long discussion the reader
has seen a lot of facts or material, so you may need to do a short summary to bring the reader back to the end result. Don’t
use a summary unless it’s needed; otherwise, your memo will appear repetitive.
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