Part III. Administrative, Procedural, and Miscellaneous

Prohibition of Ex Parte Communications Between Appeals Officers and Other Internal Revenue Service Employees

Notice 99–50

This notice provides a proposed revenue procedure that, when finalized, will provide guidance to address, in part, the directive in the Internal Revenue Service Restructuring and Reform Act of 1998, P.L. 105-206, 112 Stat. 685 (RRA 98), to develop a plan to prohibit ex parte communications between officers of the Internal Revenue Service Office of Appeals (Appeals) and other Internal Revenue Service employees that appear to compromise the independence of Appeals Officers.

Section 1001(a)(4) of RRA 98 states that the Commissioner’s plan to reorganize the Internal Revenue Service shall ensure an independent Appeals function within the Internal Revenue Service. The Treasury Department and the Internal Revenue Service are developing the reorganization plan. As part of that plan, guidance for Internal Revenue Service personnel and taxpayers is being developed to address the prohibition of ex parte communications between Appeals Officers and other Internal Revenue Service employees that appear to compromise the independence of Appeals Officers.

The proposed revenue procedure includes guidance, in the form of a series of questions and answers, that address situations frequently encountered by Appeals Officers during the course of an administrative appeal.

Before issuing final guidance, the Treasury Department and the Service invite comments from the public to aid in the development of this revenue procedure. The prohibition on ex parte communications will not take effect until the revenue procedure is issued in final form. In the interim, existing procedures relating to communications in the course of Appeals consideration of disputes remain in effect. Comments should be submitted by December 3, 1999 either to:

Internal Revenue Service National Director of Appeals

Attn.: C:AP:CIIT 1111 Constitution Ave. Washington, DC 20224 or electronically via: http:/www.irs. gov/ prod/tax_regs/comments.html (the Service Internet site).

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability.

PROPOSED REV. PROC. 99–XX

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