SECTION 2. BACKGROUND

.01 The Office of Chief Counsel (Counsel) is charged with the responsibility of representing the Commissioner of

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Internal Revenue in cases docketed in the Tax Court. I.R.C. §§ 7452, 7803(b)(2)(D).

.02 The Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–206, § 1001(4), 112 Stat. 685, 689, requires the Internal Revenue Service (IRS) to “ensure an independent appeals function” within the IRS.

.03 Under Rev. Proc. 2012–18, 2012–1 C.B. 455, for cases docketed in the Tax Court, the rules prohibiting ex parte communications continue to apply to communications between the Office of Appeals (Appeals) and the originating function, but do not apply to communications between Counsel and Appeals. However, Counsel and Appeals share a responsibility to interact – in all circumstances – in a manner that preserves and promotes Appeals’ independence. See Rev. Proc. 2012– 18, § 2.02(2), (3), 2012–1 C.B. 455, 457. .04 On October 15, 2015, the Department of Treasury and the Service published Notice 2015–72, 2015–44 I.R.B. 613, which released a proposed revenue procedure that would update Rev. Proc. 87–24, 1987–1 C.B. 720. Notice 2015–72 invited public comment regarding the proposed revenue procedure. The IRS received a total of four comments, one of which contained a general objection to the proposed revenue procedure. The three substantive comments ranged from seeking clarification on some of the terms used in the proposed revenue procedure to seeking expansion of the scope of the proposed revenue procedure to cover other areas. Treasury and the Service considered all comments received and adopted several of the suggestions by making clarifying modifications. A number of the suggestions that were not adopted in the revenue procedure may be addressed in the Internal Revenue Manual, the Chief Counsel Directives Manual, or in training.