SECTION 14. EFFECT — Internal Revenue Bulletin 2014-53

DOCUMENTS

Revenue Procedure 2009–44 and Announcements 2008–111 and 2011–6 are superseded.

DRAFTING INFORMATION

The principal authors of this revenue procedure are Debra Kohn, Office of Chief Counsel, Procedure and Administration, Charmaine Osbin, Office of Appeals, Tax Policy and Procedure for non-collection cases, and Dale Veer, Office of Appeals, Tax Policy and Procedure for OIC and TFRP cases. For further information regarding this revenue procedure, contact Ms. Kohn at (202) 317-3600, Ms. Osbin at (281) 721-7275, or Mr. Veer at (651) 726-7430 (not tollfree calls).

Exhibit 1: Addresses for Appeals Area Directors

Director, Area 1

IRS Appeals

701 Market Street, Suite 2200

Philadelphia, PA 19106-1538

Director, Area 2 - Collection

IRS Appeals

10715 David Taylor Drive

Charlotte, NC 28262

Director, Area 3

IRS Appeals

810 Broadway, Suite 300

Nashville, TN 37203-3810

Director, Area 4

IRS Appeals

701 Market St., Suite 2200

Philadelphia, PA 19106-1538

Director, Area 5 - Campus

IRS Appeals

5000 Corporate Drive

Holtsville, NY 11742-2002

Director, Area 6 - Campus

IRS Appeals

3333 Getwell Road, Stop 86E

Memphis, TN 38118-7733

Director, Area 7

IRS Appeals

55 North Robinson

Oklahoma City, OK 73102

Director, Area 8

IRS Appeals

100 First Street. Suite 2000

San Francisco, CA 94105

Director, Area 9

IRS Appeals

6377 Riverside Avenue

Riverside, CA 92506-3124

Director, Area 10 - Campus

IRS Appeals

7125 Industrial Road

Florence, KY 41042-2907

Director, Area 11 - Collection

IRS Appeals

100 First Street. Suite 2000

San Francisco, CA 94105

Director, Area 12 - Campus

IRS Appeals

2525 Capitol Street

Fresno, CA 93721-2227

Director, Area 13 - Collection

IRS Appeals

810 Broadway, Suite 300

Nashville, TN 37203-3810

Director, Appeals Team Case Leaders

IRS Appeals

300 North Los Angeles Street, Federal Building

Los Angeles, CA 90012-3308

Director, Specialty Operations
Domestic

IRS Appeals

290 Broadway, 11th Floor

New York, NY 10007

Director, Specialty Operations
International

IRS Appeals

300 Pearl Street

Buffalo, NY 14202

Exhibit 2: Model Agreement to Mediate

The Mediation ² Process.

The mediation will be an extension of the Appeals process to help [NAME OF TAXPAYER] and Internal Revenue Service (IRS)—Appeals (the PARTIES) reach a negotiated settlement of the issues to be mediated. See (2) below for the participants in the mediation process. To accomplish this goal, the mediator will act as a facilitator, assist in defining the issues, and promote settlement negotiations between the PARTIES. The mediator will inform and discuss with the PARTIES the rules and procedures pertaining to the mediation process. The mediator will not have settlement authority and will not ren

2For purposes of this agreement, the term “mediation” refers only to “non-binding mediation” as set forth in section 7123(b)(1).

Bulletin No. 2014–53 1019 December 29, 2014

der a decision regarding any issue in dispute. The PARTIES will continue to have settlement authority for all issues considered under the mediation process.

Nature of Process, Participants, Withdrawal.

(a) The mediation process is optional. (b) Each PARTY must have at least one participant attending the mediation session with decision-making authority. No later than two weeks before the mediation, each PARTY will submit to the other PARTY and the mediator a list of the participants who will attend the mediation session on behalf of or at the request of the PARTY, including a designation of the person with decision-making authority who will represent the PARTY at the mediation session. Each PARTY’s list of participants will contain the participant’s name, the participant’s position with the PARTY or other affiliation (e.g., a member of XYZ law firm, counsel to the taxpayer), and the participant’s address, [optional: telephone number, and fax number]. All participants attending the mediation on behalf of or at the request of a PARTY will be listed on the PARTY’s list of participants, including witnesses, consultants, and attorneys.

[Insert limitations on the number or types of participants, if any.]

(c) Either PARTY may withdraw from the process at any time prior to reaching a settlement of the issues to be mediated by notifying the other PARTY and the mediator in writing.

Selection of Mediator and Costs.

(a) IRS Appeals will pay the costs associated with the Appeals mediator. The taxpayer will pay the cost of a nonIRS co-mediator.

(b) The taxpayer, by signing this agreement, acknowledges that (i) the Appeals mediator is a current employee of the IRS, (ii) a conflict results from his or her continued status as an IRS employee, and (iii) this conflict will not interfere with the mediator’s ability to facilitate the case impartially.

Issues to be Mediated.

The mediation session will encompass the following issues in the IRS audit of the

federal tax returns of [NAME OF TAX- PAYER] for tax year(s)______________:

(a) Issue #1 (b) Issue #2

Submission of Materials.

Each PARTY will present to the mediator a separate written summation not to exceed XX pages (exclusive of exhibits consisting of pre-existing documents and reports) regarding each issue. The mediator will have the right to ask either PARTY for additional information before the mediation session if deemed necessary for a full understanding of the issues to be mediated. Each PARTY will simultaneously submit to the other PARTY a copy of any submission to the mediator.

Place of Mediation.

The PARTIES will attempt to select a site at or near the mediator’s office,

[NAME OF TAXPAYER] ’s office, or an Appeals office.

Proposed Schedule.

Subject to the approval of the mediator, the mediation session will be conducted according to the following schedule:

Submission of Materials to Mediator: A DATE NO LATER THAN TWO WEEKS BEFORE THE DATE OF MEDIATION SESSION

Mediation Session: By MONTH DAY, YEAR and TIME

Confidentiality.

IRS employees who participate in or observe the mediation process in any way, and any person under contract to the IRS pursuant to § 6103(n) of the Internal Revenue Code (including the mediator) that the IRS invites to participate or observe, will be subject to the confidentiality and disclosure provisions of the Internal Revenue Code, including §§ 6103, 7213 and 7431. See also 5 U.S.C § 574.

Ex Parte Contacts Prohibited.

There will be no ex parte contacts from a PARTY to the mediator outside the mediation session. This provision is not in

tended to prevent the mediator from contacting a PARTY, or a PARTY from responding to the mediator’s request for information.

Section 7214(a)(8) Disclosure.

The PARTIES to this agreement acknowledge that IRS employees involved in this mediation are bound by the § 7214(a)(8) disclosure requirements concerning violations of any revenue law.

No Record.

There will be no stenographic record, audio or video tape recording, or other transcript of the mediation session(s).

Report by Mediator.

At the conclusion of the mediation session, the mediator will issue a brief report to the PARTIES identifying each issue described in section 4, above, and whether the PARTIES either agreed to resolve or did not resolve the issue.

Appeals Procedures Apply.

If the mediation process enables the PARTIES to reach agreement on the issues, Appeals will use established procedures to close the case. Delegation Order 4–24, IRM 1.2.43.22 (addressing settlement authority for issues in a Coordinated Examination Program) or § 7122(b) (regarding offer-in-compromise cases) may apply to settlements resulting from the mediation process. Appeals will not reconsider the mediated issue(s), and a statutory notice of deficiency will be issued with respect to all unagreed issues (or the case will be processed using established closing procedures if there is no deficiency).

Precedential Use.

A settlement reached by the PARTIES through mediation will not be binding on the PARTIES (or be otherwise controlling) for taxable years not covered by the agreement. Except as provided in the agreement, no PARTY may use such settlement as precedent.

December 29, 2014 1020 Bulletin No. 2014–53

INTERNAL REVENUE SERVICE, APPEALS

By: __________________________ Name Appeals Team Manager

Date: ________________________

NAME OF TAXPAYER

By: __________________________ Name Title

Date: ________________________

Exhibit 3:

Model Mediation Participants List

Case Name: ___________________________________

Submitted By: _________________________________

Date: _______________________

Please list below all participants attending the mediation, including witnesses, consultants, and attorneys. This form must be sent to the other PARTY and to the mediator(s) no later than two weeks before the mediation session. Insert an asterisk (*) before the name of the person who has decision-making authority at the mediation session:

NAME, POSITION AND ADDRESS (TELEPHONE OR FAX NUMBER OPTIONAL)

Exhibit 4: Consent to Disclose Tax Information

Pursuant to section 6103(c) of the Internal Revenue Code of 1986 (as amended), I hereby consent to the disclosure of return information (as defined in section 6103(b)(2)) relating to the mediation session between __________________ (Taxpayer) and the Commissioner of Internal Revenue to be held on ______________ (date), as follows:

The Internal Revenue Service may disclose the taxpayer’s return and return information incident to the mediation to the mediator and any participants or observers identified in the initial list of participants and to any subsequent participants and observers identified in writing by the parties.

This consent relates to the mediation session that is the subject of an agreement to mediate dated____________. I am aware that in the absence of this authorization, the return and return information of _______________ (Taxpayer) is confidential and may not be disclosed except as authorized by the Internal Revenue Code.

I certify that I have the authority to execute this consent on behalf of Taxpayer.

Taxpayer Name: ________________________________________________

Taxpayer Identification Number: ____________________________________

Taxpayer Address: ______________________________________________

By : [Name of Individual Executing Consent] ________________________

Title: [Title of Individual Executing Consent] _________________________

Signature: _____________________________________________________

Date: _________________________________________________________

Exhibit 5: Model Mediator’s Report

The parties below agreed to mediate their dispute and attended a mediation session on MONTH DAY, YEAR in an attempt to settle the following issue(s):

Bulletin No. 2014–53 1021 December 29, 2014

ISSUE: SETTLEMENT: [ ] Yes [ ] No [ ] Partial

Proposed Adjustment Amount: Amount Sustained:

ISSUE: SETTLEMENT: [ ] Yes [ ] No [ ] Partial

Proposed Adjustment Amount: Amount Sustained:

Settlement documents will be prepared under established Appeals procedures.

DATED this______ day of ____________

/s/ Mediator

/s/ Party

26 CFR 1.6049.00–00: Returns Relating to Pay- ments of Interest (Also: 1.3406.07–00 Exceptions to Backup With- holding)

Rev. Proc. 2014–64