Curtis B. Keene - Page 30

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          dignity of those ‘rules and regulations’ which under the                    
          authority of sec. 7805(a) are prescribed by respondent ‘with the            
          approval of the Secretary.’  Sec. 301.7805-1(a), Proced. & Admin.           
          Regs."  Estate of Lang v. Commissioner, 64 T.C. 404, 406-407 &              
          n.4 (1975), affd. in part on this issue and revd. in part on                
          other grounds 613 F.2d 770 (9th Cir. 1980); see also United                 
          States v. Mead Corp., 533 U.S. 218, 228 (2001).                             
               Moreover, notwithstanding Notice 89-51, the Service until              
          May 2002 preempted litigation as to its construction of section             
          7521 by providing taxpayers with the right to record Appeals                
          conferences or hearings and, in the process, explicitly                     
          recognized the integral role played by Appeals in the                       
          Examination, Employee Plans and Exempt Organization, and                    
          Collection functions.  See 5 Administration, Internal Revenue               
          Manual (CCH), sec. 8626.1, at 25,784 (e.g., 10-23-91 revision),             
          which provided:                                                             
               General Guidelines                                                     
                    (1) The audio recording of an Appeals conference                  
               is generally permitted, if the taxpayer, or the                        
               taxpayer’s authorized representative requests it, and                  
               supplies the recording equipment.  In such cases, the                  
               appeals officer will also make an audio recording of                   
               the conference with IRS equipment.                                     
                    (2) IRC 7521 (formerly IRC 7520) provides that                    
               taxpayers may make audio recordings of interviews with                 
               the IRS that determine liability or collectibility.                    
               Although Appeals conferences differ in nature from                     
               taxpayer interviews in the auditing or collecting                      
               functions, Appeals still decides liability or                          
               collectibility on cases in which those issues have been                

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Last modified: May 25, 2011