Part III. Administrative, Procedural, and Miscellaneous

taxpayer may request early referral to Appeals of any developed, unagreed issue under the jurisdiction of the District Director arising from an audit. The District will continue to develop issues that have not been referred to Appeals. This revenue procedure does not alter the District Director’s authority to audit the returns of a taxpayer as to other issues nor limit or expand the District Director’s authority to resolve any other issues, including the authority in Delegation Order No. 236 (Rev. 3).

.02 Appropriate issues for early re- ferral. Appropriate issues for early referral are limited to those that:

(1) if resolved, can reasonably be expected to result in a quicker resolution of the entire case;

(2) both the taxpayer and the District agree should be referred to Appeals early;

(3) are fully developed; and (4) are part of a case where the remaining issues are not expected to be completed before Appeals could resolve the early referral issue. Industry Specialization Program (ISP) issues can also be referred to Appeals for early resolution under these early referral procedures. ISP issues are listed in Exhibit 8.7.1–1 of the Internal Revenue Manual. For specific procedures for the early referral of issues arising during the examination of the tax-exempt status of a bond issue, see Notice 98–58, 1998–49 I.R.B. 13, or any subsequent procedure.

.03 Issues excluded from early refer- ral. Early referral does not include an issue:

(1) with respect to which a 30-day letter has been issued. Thus, a qualified offer under § 7430(c), may not be made as part of the early referral process because such offers may only be made subsequent to the issuance of a 30-day letter;

(2) that is not fully developed; (3) when the remaining issues in the case are expected to be completed before Appeals could resolve the early referral issue;

(4) that is designated for litigation by the Office of Chief Counsel;

(5) for which the taxpayer has filed a request for Competent Authority assistance, or issues for which the taxpayer intends to seek Competent Authority assis

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, §§ 446, 481, 6213, 6405, 6621, 7121, 7123, 7430; 1.446–1, 1.481–1, 1.481–2, 1.481–4, 301.6213–1, 301.6405–1, 301.6621–1, 301.7121–1, 301.7430–1.)

Rev. Proc. 99–28

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