The IRS today released a memorandum that provides interim guidance for IRS field personnel on the criteria to be applied and the process to be used when considering requests for designation of issues (cases) for litigation made to the Office of Chief Counsel.
The memorandum [PDF 186 KB] was signed by the IRS Deputy Commissioner for Services and Enforcement and directed to the commissioners of the IRS Large Business and International (LB&I), Small Business/Self-Employed (SB/SE), and Tax Exempt and Government Entities (TE/GE) divisions, and the IRS Chief Counsel.
In additional to the interim guidance about the criteria to be applied in considering a request for designation for litigation, the memorandum also provides interim guidance on the requirements of a provision of the Taxpayer First Act of 2019 with respect to the limitation on designation of cases as not eligible for referral to the IRS Independent Office of Appeals.
The memorandum notes that historically cases designated for litigation have been infrequent, and states that the IRS should continue to use designation infrequently, subject to careful consideration at all levels of the process.
Chief Counsel Directives Manual 18.104.22.168.1 sets out the existing procedures for designating issues for litigation. Today’s memorandum states that these procedures will be revised, and that complementary procedures will be added to the Internal Revenue Manual.
Read a related IRS release—IR-2020-188.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.