[Federal Register Volume 59, Number 108 (Tuesday, June 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13813]
[[Page Unknown]]
[Federal Register: June 7, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
[Delegation Order No. 236]
Delegation of Authority
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Delegation of authority.
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Summary: The Delegation Order is extended to rollover and recurring
issue settlements effected by Appeals with respect to the same taxpayer
in the previous or subsequent tax periods.
EFFECTIVE DATE: June 3, 1994.
FOR FURTHER INFORMATION CONTACT: Harry E. Lebedun, CP:EX:C:C, Room 2032
1111 Constitution Avenue NW., Washington, DC 20224, (202)-622-3373 (not
a toll free number).
Order No. 236 (Rev. 1).
Effective Date: 6-3-94.
Settlement Authority for Examination Case Managers.
The authority vested in the Commissioner of the Internal Revenue by
Treasury Order Nos. 150-04, 150-09 and 150-10 and the authority
contained in 26 U.S.C. & 7121 is hereby delegated as follows:
1. All District Directors, Examination division chiefs, Examination
branch chiefs, and Examination case managers are delegated
discretionary authority under section 7121 of the Internal Revenue Code
to accept settlement offers, regardless of the amount of liability
sought to be compromised, with respect to rollover and recurring issues
in Coordinated Examination Program cases where a settlement on the
merits has been effected by Appeals with respect to the same taxpayer
in a previous or subsequent tax period. Prior to finalization, the
proposed settlement, together with any related closing agreement or
Form 870AD, shall be substantively reviewed and approved by the
appropriate branch chief within the Examination function.
2. For purposes of this delegation of limited settlement authority,
the terms ``rollover'' and ``recurring'' issues are defined as follows:
(a) A ``rollover'' issue involves an adjustment arising from the
same legal issue in the same transaction or taxable event and impacts
more than one tax period. For example, the rate of amortization or
depreciation of an asset, bad debt losses, basis and inventory
adjustments and the like, when related to the same transaction and
which affect future tax periods, would be susceptible to case manager
settlement where a settlement on the merits has been reached in Appeals
in a previous tax period with respect to the same taxpayer.
(b) A ``recurring'' issue involves an adjustment arising from the
same legal issue in a separate transaction or a repeated taxable event
in which the taxpayer advances the same legal position with respect to
such similar transaction or repeated taxable event as advanced by such
taxpayer in a prior tax period. For example, the method of depreciation
with respect to similar assets, the use of the same accounting method
with respect to similar transactions, the annual computation of such
deductions as depletion, the computation of certain tax credits and the
like, when advanced by the same taxpayer in later tax periods would be
susceptible to case manager settlement where a settlement on the merits
has been reached by Appeals in a previous tax period with respect to
the same taxpayer.
3. No settlement shall be effected unless the following factors are
present in the tax year currently under Examination jurisdiction:
(a) The facts surrounding a transaction or taxable event in the tax
period under examination, including the relative amounts at issue, are
substantially the same as the facts in the settled period.
(b) The underlying issue must have been settled on its merits
independently of other issues in a previous or subsequent tax period by
Appeals.
(c) The legal authority relating to such issue must have remained
unchanged.
(d) The issue must have been settled in Appeals with respect to the
same taxpayer (including consolidated and unconsolidated subsidiaries)
in a previous tax period.
4. All District Directors, Examination division chiefs, Examination
branch chiefs, and Examination case managers are delegated authority to
execute closing agreements and the Form 870AD in order to effect any
final settlement reached with respect to any rollover or recurring
issue in a Coordinated Examination Program case.
5. The authority delegated in this Order may not be redelegated.
6. The authority contained in this Order is intended to supplement
the authority contained in Delegation Order No. 97 (as amended).
Dated: May 21, 1994.
Approved:
Michael P. Dolan,
Deputy Commissioner.
[FR Doc. 94-13813 Filed 6-6-94; 8:45 am]
BILLING CODE 4830-01-U
