Industrial Investors - Page 8




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          entire IRS Appeals function would be independent.  Internal                 
          Revenue Service Restructuring and Reform Act of 1998, Pub. L.               
          105-206, sec. 1001(a), 112 Stat. 689.  The Commissioner then made           
          the guarantee of impartiality part of the IRS’s standard                    
          operating procedure by issuing Revenue Procedure 2000-43, 2000-2            
          C.B. 404.  This procedure prohibits ex parte communications by              
          IRS employees that would appear to compromise the independence of           
          an Appeals officer.                                                         
               Through a series of questions and answers, the Commissioner            
          explains which types of communications he regards as prohibited             
          ex parte contacts.  Rev. Proc. 2000-43, sec. 3, 2000-2 C.B. at              
          405.  He begins with a general definition of ex parte                       
          communications as those taking place between an Appeals officer             
          and another IRS employee in which the taxpayer does not have a              
          reasonable “opportunity to participate.”  Id., Q&A-1 and Q&A-21,            
          2000-2 C.B. at 405, 408.  He excludes the administrative file               
          from the definition of an ex parte communication because that               
          file explains what the dispute is about and establishes the                 
          jurisdiction of IRS Appeals.  Id., Q&A-4, 2000-2 C.B. at 405.               
          However, the procedure warns, communications with the                       
          “originating function” (IRS-speak for an employee whose initial             
          determination the Appeals Office is reviewing) may only address             
          “ministerial, administrative, or procedural matters and [may] not           
          address the substance of the issues or positions taken in the               






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