SECTION 8. GENERAL

PROVISIONS

1. Ex Parte Communications (1) In General. The prohibition against ex parte communications between Appeals employees and other IRS employees provided by section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. No. 105–

206, 112 Stat. 685, does not apply to the communications taking place as part of the SB/SE FTS process because the Appeals employees are not acting in their traditional Appeals settlement role. See Rev. Proc. 2012–18, 2012–10 I.R.B. 455.

(2) Cases returned for traditional Ap- peals consideration. For SB/SE FTS cases that are returned for traditional Appeals consideration for any reason, general ex parte restrictions apply, however, ex parte restrictions will not be imposed on intraAppeals communications. Appeals management will take appropriate measures to ensure these cases are handled impartially.

2. Confidentiality and Disclosure (1) In general. The SB/SE FTS process is confidential and all information and communications made during the SB/SE FTS process (both oral and written) are both taxpayer return information and dispute resolution communications subject to restrictions on disclosure. See section 6103 and 5 U.S.C. §§ 571(5) and 574. Therefore, no information or communications made during the SB/SE FTS process may be disclosed by any party, participant, or observer except as provided by statute, including sections 6103 and 7214(a)(8) and 5 U.S.C. § 574. (2) Employees. IRS employees who participate in or observe the SB/SE FTS process in any way, and any person under contract to the IRS pursuant to section 6103(n) who participates in or observes the SB/SE FTS process, will be subject to the confidentiality and disclosure provisions of the Internal Revenue Code, including sections 6103, 7213, and 7431 and 5 U.S.C. § 574.

(3) Taxpayer consent. To participate in SB/SE FTS, the taxpayer must consent under section 6103(c) to the disclosure by the IRS of the taxpayer’s returns and return information incident to SB/SE FTS to any participant identified in the initial list of participants and to any participants subsequently identified in writing by the parties. The consent to disclose and the list of participants must be set forth on the Form 14017. If the Form 14017 is signed by a person pursuant to a power of attorney executed by the taxpayer, that power of attorney must clearly express the taxpayer’s grant of authority to the representative to sign the Form 14017 and to consent to the disclosure of the taxpayer’s returns

and return information by the IRS to third parties. The presence of any observer for the taxpayer or the government may require the taxpayer (or the taxpayer’s representative) to sign a separate disclosure consent form.

3. Use as precedent. Any final agreement, case closing or closing agreement based on a settlement reached by the parties through the SB/SE FTS process will not be binding on the parties for taxable years or issues not covered by the SB/SE FTS agreement, unless such taxable years or issues are expressly addressed in a formal closing agreement. Except as expressly provided in the SB/SE FTS agreement or in a formal closing agreement, no party may use the settlement as precedent.