3.2 Appeals Officer Conferences

A protest letter or appeal letter should be filed within 30 days of an adverse action by the IRS1 . Your letter should unequivocally state that you are appealing and request a conference with an Appeals Officer.2

Appeals Officers are usually senior IRS employees. They are instructed to settle cases. 85% of appeals cases are settled. The Appeals Officers are aware of the law on common issues. They want to know the facts of your case. They are not supposed to develop the facts themselves.3 Rather, their role is to adjudicate facts and evaluate the “hazards of litigation.” 

Convincing the Appeals Officer that there are hazards of litigation will enhance the probability of a favorable settlement. The IRM states that settlements resolve each issue based on the probable result in litigation or involve mutual concessions of issues based upon the relative strength of the opposing positions when there is substantial uncertainty as to the outcome in litigation.4 Appeals Officers have broad authority to settle cases. Their settlement authority is, however, restricted if there is a judicial or revenue ruling directly on point.

• 1See IRS Publication 5 for information on how to appeal.
• 2Procedures for appeals conferences are described in I.R.M. 8.6.
• 3Appeal Officers are prohibited from ex parte communications with the auditors. Rev. Proc. 2000-43, 2000-43 IRB 404; see Adomowicz v. United States, 531 F.3d 151 (2d Cir. 2008); Robert v. United States, 364 F.3d 989 (8th Cir. 2004); Drake v. Comm’r, 125 T.C. 201 (2005) (remanding case with order that a new, independent Appeals Officer be assigned to case).
• 4I.R.M. 8.6.4.1.