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Purpose: This IRM primarily describes the processes used by the IRS Independent Office of Appeals (Appeals) with respect to case-related assistance available from various specialists, including certain attorneys in the IRS Office of Chief Counsel (Counsel), as well as actuaries and economists. It also addresses two substantive issues: requests for changes in accounting practices or methods and requests for extensions of time for making certain elections.

Audience: The primary users of this IRM section are Appeals technical employees (ATEs) and Appeals team managers (ATMs).

Policy Owner: Appeals Policy, Planning, Quality and Analysis (PPQ&A) is under the Director, Operations Support (OS).

Program Owner: Appeals Policy (Policy) is the program office responsible for providing technical and procedural guidance to the Appeals organization, and is under the Director, PPQ&A.

Contact Information: Appeals employees should follow established procedures on How to Contact an Analyst. Other employees should contact the Product Content Owner shown on the Product Catalog Information page for this IRM.

A revenue ruling is an official interpretation by the IRS of the tax laws, related statutes, treaties, and regulations published in the Internal Revenue Bulletin. It is the conclusion of the IRS on how the law is applied to a specific set of facts. Each Associate office within Counsel issues revenue rulings on issues under its subject matter jurisdiction.

Revenue rulings provide information and guidance for taxpayers, IRS employees, and others. They help taxpayers voluntarily comply with the tax laws and help IRS employees apply the tax laws correctly and uniformly. Revenue rulings do not have the force and effect of Treasury Regulations, but they may be used as precedents.

However, when applying revenue rulings, consider the effect of subsequent legislation, regulations, court decisions, revenue rulings, and revenue procedures. Appeals personnel are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

Certain issues may be under active consideration in Counsel for publication as a revenue ruling. Obtain information on the status of these issues from the Appeals Director, Operations Support (OS), by accessing the Policy FAQs website, selecting new item, and entering "Attn: Director, OS - Revenue Ruling Active Issues" in the subject line of the request.

Technical Advice Memorandums (TAMs) provide advice furnished by an Associate office in Counsel to an IRS field office (including Appeals) in response to a request for assistance concerning the interpretation or proper application of the tax law, tax treaties, regulations, revenue rulings or other precedents. The Office of Associate Chief Counsel publishes a TAM for a set of specific facts involving a specific taxpayer.

TAMs are submitted under Rev. Proc. 2024-2, or its successor. The IRS updates this revenue procedure annually as the second revenue procedure of the year, but the revenue procedure may also be modified or amplified during the year.

Appeals determines whether to request a TAM on any non-docketed case under its jurisdiction. Request a TAM when a lack of uniformity exists on the disposition of the issue or the issue is unusual or complex enough to warrant consideration by Associate Chief Counsel. Because TAM requests often result in the issuance of revenue rulings or other published guidance, Appeals is responsible for bringing appropriate issues to the attention of Associate Chief Counsel through the TAM process. See Rev. Proc. 2024-2, or its successor, for further information and background on TAM request procedures. Do not request a TAM for any issue if the same issue is involved in a docketed case for any taxpayer for any taxable year. See section 4.05 of Rev. Proc. 2024-2. Instead, request legal advice from Division Counsel pursuant to the procedures in IRM 8.6.3.5, Requests for Legal Advice.

A taxpayer may request that an issue under Appeals¡¯ jurisdiction be referred for a TAM. However, the request may be denied if the Appeals Area Director determines the referral to Associate Chief Counsel is not warranted. If the taxpayer disagrees with the Area Director¡¯s denial of a request, the Area Director will contact PPQ&A by sending an encrypted email with a subject line of Attn: Director, PPQ&A - Appeals - Denied TAM Request to the Appeals TAM Coordinator at *AP TAM Coordinator. After an analyst responds to the request, submit to the analyst by encrypted email all data on the issue for which a TAM has been sought, including the taxpayer's written request and statements, for review. Section 5 of Rev. Proc. 2024-2, or its successor, contains detailed procedures for denial and review of a taxpayer¡¯s TAM request.

Pre-submission conferences prior to submitting a TAM request are mandatory, because they promote expeditious processing of the request. A pre-submission conference will generally include Appeals, the taxpayer, Division Counsel, and Associate Chief Counsel. Appeals must consider the following issues regarding pre-submission conferences:

Request a TAM at the earliest possible stage of the proceedings. However, the lack of timeliness is not a reason for denying a request.

Appeals and Division Counsel have the following responsibilities when making the TAM request:

Associate Chief Counsel will mail its reply to the TAM request to the Appeals Area Director indicated on Form 4463. It will also send an electronic copy by encrypted email to the Appeals TAM Coordinator mailbox at *AP TAM Coordinator.

If Appeals believes the TAM contains specific errors in its analysis or conclusions, it must submit a written request for reconsideration. Before requesting reconsideration, consult with Division Counsel. See section 10.07 of Rev. Proc. 2024-2, or its successor, for more details.

After a TAM is issued to the taxpayer, Appeals is bound by the TAM¡¯s conclusions if they are favorable to the taxpayer. When a TAM is unfavorable to the taxpayer, Appeals may generally settle the issue under existing settlement authority. However, see IRM 8.6.3.4, Procedures If Appeals Conclusion is Contrary to Service Position, for specific procedures to follow when considering a conclusion contrary to a TAM, and for restrictions on taking positions contrary to TAMs related to employee plans and exempt organizations.

The holdings in a TAM, whether favorable or unfavorable, are generally applied retroactively. In rare and unusual circumstances, the Associate Chief Counsel with jurisdiction over the TAM may exercise discretionary authority under IRC 7805(b) to limit the retroactive effect of the TAM¡¯s holding. See sections 13.01 and 14 of Rev. Proc. 2024-2, or its successor.

For purposes of this section, the term "Service position" means the conclusion on an issue as expressed in a revenue ruling, a TAM issued to the taxpayer under consideration, or other guidance that falls within the meaning of a "letter ruling" in Rev. Proc. 2024-1, or its successor.

When the Service position is favorable to the taxpayer, Appeals follows it. Generally, if the Service position is adverse to the taxpayer, Appeals may partially or fully concede the issue based on the litigating hazards. However, the following are exceptions and additional considerations Appeals must take into account when recommending partial or full concessions adverse to a Service position:

Requests for the Associate Chief Counsel office¡¯s views required in (2), above, are made through the Chief, Appeals. The Appeals office making the request must submit the request by accessing the Policy FAQs website, selecting new item, and entering a subject line of "Attn: Director, OS - Concession of Issue Contrary to Service Position" . After an analyst responds to the request, send an email in memorandum format to the analyst and attach a copy of the proposed Appeals Case Memorandum (ACM) to the email, which states the issue, facts, law, and contemplated action. If a case involves so many issues that writing a proposed ACM would unduly delay the notification, attach a statement limited to the issue on which the Appeals conclusion is contrary to a Service position. The statement must include the facts, issue, law, and proposed action.

The Chief, Appeals, solicits the views of the Associate Chief Counsel office that issued the Service position ("issuing office" ) and transmits those views to the requesting Appeals office. After considering the views of the issuing office, close the case. If the views of the issuing office are not followed, the requesting office must email the final supporting statement stating the reasons why the issuing office¡¯s views are not being followed to the same analyst referenced in paragraph (3), above, with "Attn: Director, OS - Concession of Issue Contrary to Service Position" in the subject line. The Chief, Appeals, will forward the final supporting statement to the issuing office.

The term "legal advice," as used in this section, means the advice, comments, or views of a component of Counsel on substantive questions regarding the interpretation of the Internal Revenue Code, regulations, revenue rulings, revenue procedures, and court decisions. Counsel furnishes legal advice to assist IRS personnel, including Appeals personnel, to establish and maintain consistent positions in the settlement of cases.

Request legal advice from an Associate Chief Counsel office on novel or significant issues within that office¡¯s subject matter jurisdiction. A request for legal advice is not used when the procedures for requesting technical advice in IRM 8.6.3.3, Request for a Technical Advice Memorandum (TAM), apply.

Legal advice is advisory. Counsel furnishes legal advice to assist in the evaluation of the settlement potential of the case in relation to the litigating hazards involved. Appeals does not cite legal advice as the basis for closing a case and does not furnish copies of legal advice to taxpayers or their representatives.

Appeals may withdraw requests for legal advice.

If an Appeals office requires a legal opinion in a case, either docketed or non-docketed, concerning the application of settled principles of law to a specific set of facts, contact the Division Counsel office. Opinions may be secured for the following items:

A direct request for a legal opinion by an Appeals office to an Associate Chief Counsel office is not appropriate. Division Counsel determines whether the request concerns a matter that should be referred to an Associate Chief Counsel office.

IRM 4.60.1.2, Specific Exchange of Information (EOIR) Program, provides the procedures for obtaining tax-related information located in a foreign jurisdiction.

To supplement the legal and accounting skills of ATEs and assist them in properly evaluating the economics underlying many of the issues they may encounter, particularly those in international transfer pricing issue cases, Appeals has economists available to assist with issue resolution. See IRM 1.4.28.10, Referrals to Appeals Technical Guidance, International Operations, and TE/GE, for a general guide for requesting assistance from an economist.

Chief Counsel prepares and publishes Actions on Decisions to represent the Service¡¯s litigating posture on controversial issues in a specific case and provide the legal basis for the Service¡¯s position on those issues. See IRM 8.6.4.2.7, Case Evaluation for Settlement Purposes, for information concerning Actions on Decisions.

This section describes case coordination with the office of Employee Plans Technical (EP Technical) in cases requiring actuarial assistance.

The Office of the Deputy Commissioner, Tax Exempt and Government Entities (TE/GE), has the responsibility for providing actuarial assistance to all Service components. It provides such assistance through EP Technical, which is an office within the Employee Plans Rulings and Agreements division. See IRM 7.1.6.5.4, Actuarial Assistance, for information on formally requesting assistance from EP Technical.

Assistance is provided in response to actuarial questions relating to the following issues:

EP Technical also furnishes assistance in these areas to Counsel and the Justice Department (through Counsel) in the development and presentation of actuarial issues for trial or pre-trial settlement. Such assistance may include securing or providing expert witnesses for cases in litigation.

Requests for actuarial assistance may be submitted as a request for technical advice, following the procedures contained in IRM 8.6.3.3, Request for a Technical Advice Memorandum (TAM), and Rev. Proc. 2024-2. Such requests may also be made as a request for legal advice, following the procedures in IRM 8.6.3.5, Requests for Legal Advice.

A taxpayer may request, using Form 3115, Application for Change in Accounting Method, to change its method of accounting even if the method to be changed is an issue under consideration by an Appeals office. This provision is effective for taxable years ending on or after December 31, 2001. See section 2.03(2)(b) of Rev. Proc. 2002-19. The request does not affect full consideration of the pending issue in Appeals because the taxpayer¡¯s method change is without audit protection. See sections 3.08(2) and 8.02(7) of Rev. Proc. 2015-13, or its successor.

In general, taxpayers may not request, or otherwise make, a retroactive change in accounting method. See section 2.05 of Rev. Proc. 2015-13. The applicable revenue procedure is the revenue procedure in effect at the time the request was submitted. For Forms 3115 filed on or after January 16, 2015, for a tax year of change ending on or after May 31, 2014, Rev. Proc. 2015-13 provides the procedures under which taxpayers may obtain either automatic consent or advance (non-automatic) consent of the Commissioner to change a method of accounting. In prior years, the procedures for automatic consent and advance (non-automatic) consent were separated into two revenue procedures, with the following effective dates:

Automatic consent applications:

In a case where the taxpayer has challenged the National Office¡¯s denial of a requested advance (non-automatic) consent accounting method change made on Form 3115, the court will review the taxpayer¡¯s challenge under an abuse-of-discretion standard. See IRM 8.6.3.4, Procedures If Appeals Conclusion is Contrary to Service Position. Thus, Appeals will not settle any case contrary to the National Office¡¯s decision to deny the method change, nor will it give weight to any hazards of litigation based upon the possibility of a reversal of the denial in a court proceeding.

The IRS may impose changes to the taxpayer¡¯s accounting method, as provided in IRC 446(b). See also 26 CFR 1.446-1(b) and Rev. Proc. 2002-18. An ATE may resolve an accounting method issue by offering terms and conditions that differ from those ordinarily applicable to a Service-imposed accounting method change to appropriately reflect hazards of litigation.

To implement a Service-imposed change in method of accounting, secure a closing agreement under IRC 7121. To resolve an accounting method issue raised by the IRS on a non-accounting-method change basis, execute a closing agreement under IRC 7121. See IRM 8.13.1, Processing Closing Agreements in Appeals, and Rev. Proc. 2002-18.

When resolving an accounting method issue as an accounting method change, Appeals must provide notice to the taxpayer that resolution of the issue is being treated as an accounting method change unless such notice was provided by the examining agent. The notice must be in writing, and this requirement is satisfied if a closing agreement is executed finalizing the change. The resolution of an accounting method issue does not establish a new method of accounting if the IRS does not provide such notice. See section 7 of Rev. Proc. 2002-18.

26 CFR 301.9100-1 provides that the Commissioner may grant a reasonable extension of the time fixed by regulations for making elections or applications for relief.

An election made pursuant to 26 CFR 301.9100-2 for an automatic extension of time is not a letter ruling request and does not require payment of a user fee under Rev. Proc. 2024-1, or its successor.

A request for an extension of time for making an election or other application for relief under 26 CFR 301.9100-3 is not submitted as a request for a TAM; instead, the request is submitted as a letter ruling request even if the request is submitted after the examination of the taxpayer's return has begun or after the issues in the return are being considered in Appeals or a federal court. Therefore, a section 301.9100-3 request should be submitted pursuant to Rev. Proc. 2024-1, or its successor, including the payment of the applicable user fee listed in Appendix A of Rev. Proc. 2024-1. Also see IRM 1.2.2.16.3, Delegation Order 30-3 (formerly DO-183, Rev. 8), Extension of Time for Making Certain Elections, which does not delegate authority to grant relief under section 301.9100-3 to Appeals.

In a case where the taxpayer has challenged the National Office¡¯s adverse letter ruling issued under 26 CFR 301.9100-3, Appeals will not settle any case contrary to the National Office¡¯s decision to deny the extension request, nor will it give weight to any hazards of litigation based upon the possibility of a reversal of the adverse ruling in a court proceeding.