IRS Increases Managers' Settlement Authority

WASHINGTON - To help ensure that tax disputes are resolved at the lowest possible level, the Internal Revenue Service has clarified and extended the authority of its examination case managers.

"Greater settlement authority at the exam level means less time and expense for both the taxpayer and the government in getting to the correct tax liability," said IRS Commissioner Margaret Milner Richardson.

Managers may use a previous Appeals settlement with a particular taxpayer or another, directly involved taxpayer in a Coordinated Examination Program case to resolve the same issue in another tax year. Earlier IRS initiatives raised the percentage of CEP cases agreed at the exam level from 29 percent in FY-1990 to 75 percent in FY-1994. This action should further increase that rate.

Also, exam managers may now use Appeals settlement guidelines to resolve certain coordinated issues in the Industry Specialization Program and International Field Assistance Specialization Program. Appropriate ISP or IFASP coordinators would review proposed settlements to ensure consistency and uniformity.

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