SECTION 1. BACKGROUND

Section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. No. 105–206, 112 Stat. 685 (RRA), required the Commissioner of Internal Revenue to develop and implement a plan to reorganize the Internal Revenue Service (IRS). In addition, the RRA specifically directed the Commissioner to “ensure an independent appeals function within the Internal Revenue Service, including the prohibition - - - of ex parte communications between appeals officers and other Internal Revenue Service employees to the extent that such communications appear to compromise the independence of the appeals officers.” RRA section 1001(a)(4). In accordance with that directive, the Department of the Treasury and the IRS issued guidance in Rev. Proc. 2000–43, 2000–2 C.B. 404. Since the issuance of Rev. Proc. 2000–43 in October 2000, the IRS has made changes to some of its business practices and adopted new ones that did not exist at the time that the revenue procedure was issued. Accordingly, Treasury and the IRS issued Notice 2011–62, 2011–32 I.R.B. 126 (Aug. 8, 2011), which set forth a proposed revenue procedure to revise Rev. Proc. 2000–43 by addressing these changed circumstances, as well as clarifying and modifying the rules in light of the IRS’ experience working with that revenue procedure. Also, the revenue procedure was redesigned from a question and answer format to a narrative format to improve usability. In connection with that change, the material was rearranged and organized under appropriate headings to make it easier to find.

Notice 2011–62 invited public comment regarding the proposed revenue procedure. Treasury and the IRS considered all comments received and the proposed revenue procedure has been modified to take into account the concerns raised. For example, the remedies section has been modified to provide that Appeals employees shall ask the taxpayer/representative for input regarding what is an appropriate

furnisher must furnish the notice by mail or in person within 30 calendar days after the electronic notice is returned.