This IRM section provides information and guidance for working:

TE/GE cases are submitted to Appeals via APS, with paper administrative files being shipped to them at the address found on the Appeals Case Routing page under the heading of To Appeals From External Sources.

Appeals generally does not accept cases after a final adverse determination letter is issued. Appeals also does not normally accept docketed cases under Declaratory Judgment procedures, which are identified by the letter "X" for EO cases and "R" for EP cases after the docket number. These cases are under Tax Exempt Government Entities Division Counsel’s (TEGEDC) jurisdiction. Only in rare and limited circumstances will an exception be made.

The Taxpayer Bill of Rights, Pub. 1, applies to Appeals employees’ interactions with taxpayers. The TBOR lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3) , Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

Technical guidelines in TE/GE cases are found in the following IRM sections:

The Director, Case and Operations Support, is the executive responsible for Appeals TE/GE tax policy.

The Director, Policy, Planning, Quality and Analysis, is the responsible program owner of this IRM section.

The TE/GE Appeals Examination Policy Program Analyst is responsible for the oversight of this IRM section.

The table provides commonly used acronyms and their definition.

EP cases from the field are routed to Appeals via the APS unit’s address described in IRM 8.7.8.1.1(2).

APS will establish (i.e., card-in) the new EP case on the Appeals Centralized Database System (ACDS) and forward the case to the Appeals Team Manager (ATM). See IRM 8.20.5.36, Tax Exempt/Government Entities (TE/GE) Cases, for APS carding-in of EP cases.

The ATM who receives the EP case from APS will determine if the case is ready for consideration by Appeals by reviewing the following:

If the case is ready for consideration by Appeals, the ATM assigns the case to an AO with specialized knowledge or experience in employee plan issues.

Upon receipt of the EP case by the ATE, follow intake procedures as follows:

Within 45 days from receipt of the EP case, the ATE will verify the statute on the case and issue an initial contact letter (e.g., Letter 5157, Non-Docketed Acknowledgement & Conference). Telephone contact may also be made.

See Exhibit 8.7.8-1, Most Common EP Returns and Forms, for the most common EP returns and forms.

The ATE should review the administrative file to ensure that the following required information is included, as applicable. Note that the requirement for an original return does not apply in EP determination or termination cases:

As part of the preliminary review, the ATE determines whether or not the case includes a mandatory technical advice issue.

When required by the IRS/Department of Labor (DOL) Agreement (plan disqualification or tax proposed under IRC 4971 or IRC 4975), the ATE prepares a DOL notification letter within 15 workdays of receipt of the case. See Exhibit 8.7.8-2, Notification Letter to Department of Labor of an Employee Benefit Plan in Appeals, and IRM 8.7.8.2.3, Coordination with Department of Labor (DOL) and Pension Benefit Guaranty Corporation (PBGC), for further information.

Some EP matters require coordination with the Department of Labor (DOL) or the Pension Benefit Guaranty Corporation (PBGC). Before discussing Appeals’ decision with the taxpayer or signing a closing agreement, the ATE should determine whether coordination with DOL or PBGC is required. 26 CFR 301.6103(l)(2)-3 provides rules for disclosure of information to DOL and PBGC.

The ATE should coordinate with DOL or PBGC on any case where the case file indicates the other agency also has a case involving the same plan or the same taxpayer.

The following details the IRS/DOL Coordination Agreement regarding appeals of such cases. The IRS/DOL Coordination Agreement can be located at Relationship with IRS | U.S. Department of Labor (dol.gov).

If coordination with the PBGC is required, the ATE will contact:

General Counsel, Pension Benefit Guaranty Corporation
1200 K Street, N.W.
Washington, D.C. 20005-4026

Cases involving qualified or continuing qualified status are subject to the declaratory judgment provisions of IRC 7476. Therefore, TEGEDC Area Counsel’s review and concurrence is necessary prior to issuance of the final adverse determination, revocation, or non-qualification letter.

TEGEDC Area Counsel will review the final letter, Appeals Case Memorandum (ACM), case file, and the administrative record required on cases subject to IRC 7476. The administrative record should be in accordance with IRM 4.71.3.6.4, Administrative Record.

TEGEDC Area Counsel will try to complete its review in 45 calendar days or less. If they recommend an adverse letter should not be issued in whole or in part, and if the ATM and TEGEDC Area Counsel cannot resolve any disagreements over the letter’s content, it will be resolved with advice and assistance of the Appeals Area Director.

On cases that are sent to IRS Counsel for review, the ATE will input in ACDS the action code AC with sub-action code DC (Counsel Review).

Technical advice is required on the following EP cases:

Appeals does not accept cases from the field where an adverse action resulting from a Technical Advice Memorandum (TAM) issued with respect to a plan’s qualification and status because it does not have appeal rights. See IRM 8.7.8.3, Exempt Organization (EO) cases in Appeals, and 26 CFR 601.106(a)(1)(v) .

If a case, already under the jurisdiction of Appeals, was issued a TAM regarding plan qualification and status prior to the case coming to Appeals and the Appeals proposed disposition is contrary to the TAM, the ATE will submit a proposed disposition of the issue contrary to the TAM as a request for a new TAM. See 26 CFR 601.106(a)(1)(v) and Rev. Proc. 2023-2 (updated annually).

On cases from the field with TAMs regarding issues other than plan qualification and status, Appeals will follow conclusions that are favorable to the taxpayer and for TAMs that are unfavorable to the taxpayer, Appeals may settle the issues. If a full concession of an issue is recommended by Appeals and is contrary to the TAM’s position, without offsetting consideration, the ATE will submit a proposed disposition of the issue contrary to the TAM as a request for a new TAM. However, if the facts upon which the TAM is based are different, a new TAM will not be required. See Rev. Proc. 2023-2 (updated annually).

ATEs may request a TAM where a lack of uniformity exists or the issue is unusual or complex. Appeals will follow the TAM issued to Appeals.

A taxpayer may also request that a case under Appeals’ jurisdiction be referred for a TAM. The request may be denied, however, if Appeals determines that TAM is not warranted.

Requests for discretionary relief under IRC 7805(b) from the retroactive effect of an adverse action are not mandatory TAMs.

For guidance on TAMs, see IRM 8.6.3.2, Request for a Technical Advice Memorandum (TAM), and Rev. Proc. 2023-2 (updated annually).

Settlement of plan qualification issues may be resolved with a closing agreement. See IRM 8.13.1, Processing Closing Agreements in Appeals.

Certain non-tax payments for EP agreements (see IRM 3.17.46.6.5.1, Sanction Payments) are processed on Non-Master File (NMF). For these payments, Form 3244-A, Payment Posting Voucher - Examination, should contain the following items:

See also Exhibit 8.7.8-7, Appeals TE/GE Payment Processing.

All letters pertaining to the qualified status of employee plans (whether favorable or unfavorable) are signed by the ATM per Delegation Order No. 7-1 (as revised).

Determination Cases Settled

Revocation or Non-qualification Examination Cases Settled

Unagreed Tax Cases

Agreed Tax Cases

Unagreed Qualification Cases (Determinations or Examinations)

Unless otherwise indicated in this section, when closing an EP case the ATE will follow ordinary closing procedures in IRM 8.2.1.10, Closing the Case to APS.

On EP settlement cases (tax deficiency or qualification related), revocations, adverse determinations, or tax deficiency cases, once an ACAP is entered on ACDS, the ATM will forward an advance electronic copy of the Form 5402 and ACM to the manager of EP Mandatory Review (examinations) or Manager, QAS (determinations).

Final adverse letters pursuant to IRC 7476 will be issued by APS and suspended until the earliest of the following events:

On defaulted cases, APS takes appropriate action to close the case and indicates on Form 5402, Appeals Transmittal and Case Memo, the "Defaulted" date.

Close all other cases when the determination or other letter is issued notifying the taxpayer of Appeals’ decision or an agreement to a tax change is received, whichever applies.

Place a copy of Form 5402, Appeals Transmittal and Case Memo, and the Appeals notification or determination letter to the employer or sponsor in the permanent application file before closing the case from Appeals.

Update the case with a petition filed with a court and transfer it to TEGEDC Area Counsel. All cases subject to declaratory judgment proceedings must include an administrative record and index. The administrative record and index are prepared by EP Division, updated by Appeals, and finalized by TEGEDC Area Counsel.

Final closings from Counsel will be sent to the appropriate APS location for processing based on the Direct Shipment Table for processing. Follow processing procedures and any special instructions (such as on Form 1734, Transmittal Memorandum, or memo) for docketed cases. See IRM 8.20.7, Closing Procedures.

EO cases from the field are routed to Appeals via the APS unit’s address indicated in IRM 8.7.8.1.1(2).

APS will establish (i.e., card-in) the new EO case on ACDS and forward the case to the ATM. See IRM 8.20.5.36.2, EO Determination Case Carding, and IRM 8.20.5.36.3, EO Revocation Case Carding, for APS carding-in of EO cases.

The ATM who receives the EO case from APS will determine if the case is ready for consideration by Appeals by reviewing the following:

If the case is ready for consideration by Appeals, the ATM assigns the case to an AO with specialized knowledge or experience in tax exempt organization issues.

Upon receipt of the EO case by the ATE, follow intake procedures as follows:

Within 45 days from receipt of the EO case, the ATE will verify the statute on the case and issue an initial contact letter (e.g., Letter 5157, Non-Docketed Acknowledgement & Conference). Telephone contact may also be made.

See Exhibit 8.7.8-3, EO Returns and Forms, for due dates of EO Forms and returns.

The ATE should review the administrative file to ensure that the following required items are included:

The ATE will validate the case on ACDS. If ACDS needs correction or updating, the ATE can make most updates or corrections using the Validation Tracking System (VTS). When an update to ACDS is needed that cannot be made through VTS, refer to IRM 8.20.6, Account and Processing Support (APS), Interim Actions, and IRM 8.10.3.4.3, ACDS Update Request Forms.

An applicant’s request for a determination letter may be withdrawn prior to the issuance of a proposed adverse determination letter. Therefore, an application for tax exempt status may not be withdrawn at the Appeals level. See Rev. Proc. 2023-5 (updated annually) and 26 CFR 601.201(n)(5)-(6).

Determinations cases consist of the following types:

Appeals of EO determination cases are covered under 26 CFR 601.201(n)(5) and Section 7 of Rev. Proc. 2023-5 (updated annually).

Any final adverse determination with respect to private foundation classification issues for an IRC 501(c)(3) organization is subject to declaratory judgment provisions under IRC 7428. An administrative record is required.

If Appeals sustains the proposed change and the taxpayer has not agreed via a closing agreement, prepare a final adverse determination letter and documents for distribution by APS as follows (see Exhibit 8.7.8-5, PF Final Adverse Determination Check Sheet):

If Appeals sustains the proposed change and the taxpayer has agreed via a closing agreement, issue a final adverse determination letter and documents as follows (see Exhibit 8.7.8-5, PF Final Adverse Determination Check Sheet):

TEGEDC Area Counsel’s review and concurrence of the final adverse determination letter must be obtained.

On exam cases, make a request to EO Mandatory Review for the redacted versions of the proposed adverse letter and Form 886-A when it is known an adverse action will be recommended.

If Appeals concedes the proposed change to private foundation classification, issue Letter 1368, Letter-Definitive Determination that an Organization is not a Private Foundation.

Revocation cases consist of revoking an organization’s determination letter recognizing the tax exempt status of the organization.

If the revocation is sustained by Appeals, the organization is considered a taxable entity and should file a Form 1120, U.S. Corporation Income Tax Return, or Form 1041, U.S. Income Tax Return for Estates and Trusts, for any open tax years. However, the organization may file a petition with the Tax Court to contest the revocation per IRC 7428 after the final adverse determination letter is issued.

Appeals of revocation cases are covered under 26 CFR 601.201(n)(6) and Section 12 of Rev. Proc. 2023-5 (updated annually).

EO examination cases, other than revocation, may consist of unrelated business income tax, Chapter 41 and 42 excise taxes, employment taxes, wagering excise taxes, and discrepancy adjustments on an individual’s Form 1040, U.S. Individual Income Tax Return.

Appeals of EO examinations are covered under 26 CFR 601.106.

All final adverse determination letters on issues subject to declaratory judgment procedures under IRC 7428 (i.e., tax exempt status, IRC 170(c)(2) status, and private foundation classification) require review by IRS TEGEDC Area Counsel. See IRM 8.17.4.31, Counsel Review of Notices.

Statutory notices of deficiency on excess benefit transaction (IRC 4958) cases also require review by TEGEDC Area Counsel. The ATE will prepare the following documents and email them to the ATM to request TEGEDC Area Counsel’s review:

If TE/GE does not concur with the proposed action, a meeting may be requested with TEGEDC Area Counsel to discuss the reasons for non-concurrence.

On cases that are sent to TEGEDC Area Counsel for review, input in ACDS the action code AC with sub-action code DC (Counsel Review).

Appeals does not accept cases from the field where an adverse action resulted from a Technical Advice Memorandum (TAM) issued with respect to an organization’s tax exempt status or foundation classification, because it does not does not have appeal rights. See 26 CFR 601.106(a)(1)(v).

If a case, already under the jurisdiction of Appeals, was issued a TAM regarding tax exempt status or foundation classification prior to the case coming to Appeals and the Appeals proposed disposition is contrary to the TAM, the ATE will submit a proposed disposition of the issue contrary to the TAM as a request for a new TAM. See 26 CFR 601.106(a)(1)(v) and Rev. Proc. 2023-5 (updated annually).

On cases from the field with TAM’s regarding issues other than tax exempt status or foundation classification, Appeals will follow conclusions that are favorable to the taxpayer and for TAMs that are unfavorable to the taxpayer, Appeals may settle the issues. If a full concession of an issue is recommended by Appeals and is contrary to the TAM’s position, without offsetting consideration, the ATE will submit a proposed disposition of the issue contrary to the TAM as a request for a new TAM. However, if the facts upon which the TAM is based are different, a new TAM will not be required. See Rev. Proc. 2023-5 (updated annually).

ATEs may request a TAM where a lack of uniformity exists or the issue is unusual or complex. Appeals will follow the TAM issued to Appeals.

A taxpayer may also request that a case under Appeals’ jurisdiction be referred for a TAM. The request may be denied, however, if Appeals determines that a TAM is not warranted.

Per Rev. Proc 2023-5, taxpayer requests for relief from retroactive revocation of tax exemption or modification of a determination letter made under IRC 7805 require assistance by the Office of Division Counsel (TEGEDC). The ATM will email the request to TEGEDC. An attorney will be assigned to the case and may request additional documents. TEGEDC Area Counsel’s final decision, via internal memo to Appeals TE/GE, may take up to 60 days to complete including holding a conference with the taxpayer if the decision is adverse to the taxpayer. TEGEDC Area Counsel’s decision may or may not be followed by Appeals TE/GE depending on the facts and circumstances. On cases that are sent to TEGEDC Area Counsel for review, input in ACDS the action code AC with sub-action code DC (Counsel Review).

For guidance on TAMs, see IRM 8.6.3.3, Procedures if Appeals Conclusion is Contrary to Service Position, and Rev. Proc. 2023-2 (updated annually).

In adverse actions such as denials of tax exempt status, modifications of private foundation classification, or revocations of tax exempt status there is no special agreement form. In agreed cases, a closing agreement, Form 906, Closing Agreement on Final Determination Covering Specific Matters, may be used.

In agreed adverse action cases, the taxpayer agrees to waive its declaratory judgment rights under IRC 7428 and the case may be closed without waiting for the 90-day statutory period to expire. (During the 90-day period a taxpayer would normally have the opportunity to file a petition with the court to contest the adverse action.)

Closing agreements may be used in other situations as needed, such as to memorialize the settlement of case. For example, a closing agreement may be used on a conceded revocation with a sanction payment.

The following actions related to closing agreements should be performed. See also IRM 8.13.1, Processing Closing Agreements in Appeals:

The ATE should follow ordinary closing procedures in IRM 8.2.1.10, Closing the Case to APS.

Enter the following required CARATS codes for a closed case with a closing code below 20:

The ATE will prepare the following:

The ATE will email the items in IRM 8.7.8.3.10 (3), above, to the ATM for review and approval. Include the WUNO in the email subject line.

Upon approval by the ATM, the Form 5402, Appeals Transmittal and Case Memo, and other documents will be electronically signed by the ATM and returned to the ATE via email with shipping instructions. The ATM will also enter an ACAP on ACDS.

There should be no more than 7 days between the AC-FR date and the ACAP date.

The EO case file may include an envelope containing (one or more) Forms 2363-A, Request for IDRS Input for BMF/EO Entity Change, and/or a Form 1120, U.S. Corporation Income Tax Return, conversion package for processing if the issue is sustained by Appeals (e.g., revocation cases). The ATE should ensure these items are sent to EO Mandatory Review for processing by completing a mailing package and envelope with these items.

After the ATM approves an EO case for closing, the following documents are forwarded to EO Mandatory Review via email with the following subject line, "Advance Notice of Appeals Case Closing" :

IRC 6103 provides the general rules regarding the confidentiality of all tax returns and tax return information. IRC 6103(a) prohibits officers and employees of the United States from disclosing returns or return information, whether obtained in the performance of duty or otherwise.

There are two major statutory exceptions that govern the public disclosure of tax exempt organizations’ tax information. One exception arises under IRC 6104 and the other arises under IRC 6110.

IRC 6104 makes available for public inspection tax information relating to certain exempt organizations. IRC 6104(a)(1)(A) requires the IRS to disclose the application filed by the organization including supporting materials, and IRS determinations granting those exemptions. IRC 6104 contains no provisions for redacting identifying information except for trade secrets, patents, and processes of the organization, or which would adversely affect the national defense.

IRC 6110 applies in all adverse determinations resulting in a revocation/denial of tax exempt status or an adverse change in private foundation classification. IRC 6110 provides that the text of any written determination and any background file document relating to such written determination shall be open to public inspection. The IRS must delete certain identifying information (e.g., names, addresses, and other identifying details of the person to whom the written determination pertains).

See Rev. Proc. 2023-5 (updated annually) and Tax Analysts v. Internal Revenue Service, 350 F.3d 100 (D.C. Cir. 2003).

In determination cases, EO Determinations will email to the ATM the proposed adverse letter in original form and redacted form. Once the determination case is assigned to an ATE, the ATM will send these items via email to the ATE. The case file may also contain hard copies of these documents.

In examination cases, EO Mandatory Review will redact the proposed adverse letter including the Revenue Agent’s Report (RAR or Form 886-A, Explanation of Items). A request to EO Mandatory Review will be made when it is anticipated that a final adverse determination will be made (when the case is with Counsel for concurrence or review).

Under IRC 6110, the ATE must redact all Appeals-generated documents. The ATE should redact names, addresses, and other identifying details of the person to whom the written determination pertains, and of any person identified in the written determination (other than a person making a third party communication), and any information that would permit any person generally knowledgeable with respect to the appropriate community to identify the taxpayer.

Examples of taxpayer information that may be redacted include:

IRC 6103(d) permits the disclosure of returns and return information with certain taxes imposed to any state agency, body or commission charged under the laws of the state with the responsibility for the administration of state tax law. Such disclosure may be made only in response to a written request by the head of the agency, body or commission, and only for the purpose of, and to the extent necessary for, the administration of such tax laws.

IRC 6104(c), as amended by the Pension Protection Act of 2006 (PPA), expanded the scope of information provided to state agencies regarding 501(c)(3) organizations. Prior to the PPA, the IRS provided notifications of final revocations for organizations exempt under IRC 501(c)(3) to all state tax or charity agencies. Subsequent to the PPA, state agencies must now meet certain requirements to receive information on proposed and final revocations of IRC 501(c)(3) organizations and proposed and final Chapter 41 and 42 taxes. Appeals will not need to be concerned with the proposed actions as far as notification is concerned.

FSL/ET is responsible for compliance and education activities with respect to governmental entities and their subordinate entities. FSL/ET taxpayers generally include:

FSL/ET compliance activities are generally focused on: (i) employment taxes (e.g., Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return; Form 941, Employer's Quarterly Federal Tax Return; and Form 945, Annual Return of Withheld Federal Income Tax); (ii) Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons; and (iii) information return reporting (Forms 1099; Form W-2, Wage and Tax Statement; and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding).

Form 941, Employer's Quarterly Federal Tax Return, employment tax cases generally involve additional wage adjustments (e.g., fringe benefits) and/or worker classification issues.

Cases involving civil penalties under IRC 6721 and IRC 6722 (failures to file correct information returns and furnish correct payee statements) usually stem from Form 1099 and/or Form W-2 filing requirements. When both penalties are asserted, each penalty should have its own separate work unit.

Unless otherwise indicated in this IRM section, all other FSL/ET cases will follow Appeals procedures as indicated below:

See IRM 4.75.7, Exempt Organizations and Federal State Local /Employment Tax Case Assignment Guide.

Indian Tribal Governments (ITG) coordinates all aspects of tax administration as they impact Indian tribal governments and their related entities. This includes indirect assistance, direct assistance, compliance checks and examinations of returns. ITG is responsible for providing federal tax compliance assistance only at the tribal level. Issues involving individual tribal members are worked by the Wage and Investment or Small Business/Self Employed Divisions.

Tribal Council officials should be treated as officials of another government. The ATE should take the time to learn their official titles (e.g., Chairman, President, Counsel, or Representative).

The Tribal Chairman (Governor), Tribal Counsel, or CFO may generally receive copies of notices and communications without submitting a Form 2848, Power of Attorney and Declaration of Representative, as long as they are employees of the Indian tribal government.

Compliance activities on ITG cases generally focus on employment taxes (e.g., Form 941, Employer's Quarterly Federal Tax Return; Form 944, Employer's ANNUAL Federal Tax Return; Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return; Form 943, Employer's Annual Tax Return for Agricultural Employees; and Form 945, Annual Return of Withheld Federal Income Tax); Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons; excise taxes; income taxes; and information returns (e.g., Form W-2, Wage and Tax Statement; Form W-2 G, Certain Gambling Winnings; Forms 1099; and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding).

Form 941 employment tax cases generally involve additional wage adjustments (e.g., fringe benefits) and/or worker classification issues.

Unless otherwise indicated in this IRM section, all other ITG cases will follow Appeals’ procedures as indicated below:

See IRM 4.88, Indian Tribal Governments (ITG) Examination Issues and Procedures, for technical guidelines.

The TEB program is responsible for oversight, compliance and education related to arrangements that involve debt instruments or obligations of states, their political subdivisions and other entities entitled to issue tax exempt debt instruments under IRC 103 and certain tax credit bonds. These instruments may include:

There are two types of Tax Exempt bonds under IRC 103:

For Tax Credit Bonds, the interest is in the form of a tax credit rather than an interest payment to the bondholder. It is possible that a tax credit bond could continue to be a qualified bond while a controversy exists over the amount of the credit available.

Direct Pay Bonds issued under IRC 6431 are a type of tax credit bond but the issuer receives a payment from the IRS to cover a certain percentage of the interest paid by the issuer of the bonds. The interest paid on Direct Pay Bonds is taxable to the recipient.

TEB cases in Appeals may involve the following issues:

IRC 7478 provides for Tax Court review of an adverse ruling from the IRS on a prospective issuance of a governmental obligation under IRC 103. Cases docketed under the declaratory judgment provisions of IRC 7478 are under Counsel’s exclusive jurisdiction regardless of whether TEB or Appeals issued the final adverse letter. Consequently, Appeals does not accept those cases.

ATEs generally follow the procedures provided in the following IRMs when a taxpayer raises a new issue in a non-docketed case:

For non-docketed cases, ATEs will continue to follow the procedures in (1), above, except that the procedures given in IRM 8.7.8.5.5, Jurisdiction Released, below, will be followed to return a case to TE/GE.

ATEs will continue to follow the procedures provided in the following IRMs when a taxpayer raises a new issue in a docketed case:

ATEs will continue to follow the procedures provided in IRM 8.6.1.7.5, Taxpayer Provides New Information, when a taxpayer provides new information in a non-docketed case, with the following two exceptions:

ATEs will continue to follow the procedures provided in IRM 8.4.4, Examination Assistance Requests, when a taxpayer provides new information in a docketed case.

ATEs will continue to follow the procedures provided in IRM 8.6.1.7.6, Taxpayer Raises New Theory or Alternative Legal Argument, when a taxpayer raises a new theory or alternative legal argument in a non-docketed case, but will use the following step-action table for routing an information package to TE/GE:

For docketed cases in which the taxpayer raises a new theory or alternative legal argument that the ATE believes warrants review and comment by TE/GE before the ATE can fully evaluate the hazards of litigation, the ATE will follow the instructions in IRM 8.4.4.3.1, New Information Received in Appeals, and treat the new theory or alternative legal argument as new information for purposes of determining if the case meets the criteria for making an Examination Assistance Request to TE/GE.

The following table summarizes the routing of non-docketed cases when the taxpayer advances a new theory or alternative legal argument, raises a new issue, or provides new information or evidence that at the discretion of the ATE requires additional analysis or investigative action. Note, however, that a short statute may prevent a case from being returned to TE/GE.

For non-docketed cases that are being returned to TE/GE with jurisdiction released by Appeals, the ATE will follow these procedures: