Guidance on Simplified Method to Make a Late Portability Election
TSCPA Committee Comments on Identifying and Reducing Tax Regulatory Burdens

IRS Begins Virtual Appeals Conference Pilot Program

By William R. Stromsem, JD, CPA

On Aug. 1, the IRS will start a pilot program to provide virtual appeals conferences as an alternative to telephone and face-to-face conferences (IR-2017-122). This has great potential to help Texas CPAs and might also cause some possible problems. 

The IRS plans to use a web-based screen-sharing application similar to online meeting programs that are commercially available for home computers and smart phones. The IRS says the application will have more tools than the current video conference alternative that is only available in a few IRS offices and that would likely be replaced by the virtual appeals application.

The virtual appeals conference alternative would save travel time and expense in large states like Texas where the nearest IRS Appeals office might be hundreds of miles away and would be preferable to a telephone conference in those situations. However, with cuts to the IRS budget and Appeals personnel, the availability of virtual appeals may tempt the IRS to further curtail face-to-face appeals, which are often more effective in resolving issues. There are also several unresolved issues that will have to be considered.

The IRS is touting this as a “virtual face-to-face option.” This terminology seems to assume that there is no substantive difference between a virtual conference and a real face-to-face conference. IRS Appeals Chief Donna Hansberry seems to blur this distinction in saying that “Taxpayers who choose the web-based option will be able to get face-to-face service remotely.” While the virtual conference may be preferable to a telephone conference, it may be a poor substitute for an in-person conference where papers can easily be passed back and forth and discussed, and where each side can evaluate body language and other subtleties that might not appear on a camera to tell how their points are being received. 

The IRS will have to clarify some issues, such as:  can the IRS or the taxpayer record the proceeding and possibly use the recording in a judicial appeal; who controls the camera; will it just provide head shots or will there be some ability to sense body language; and if remote settlement officers participate in appeals calls with a taxpayer’s local IRS representative, will that possibly override and diminish the authority of the local appeals officer? 

TSCPA’s Federal Tax Policy Committee has actively commented on its concerns about substituting virtual services for live services, and will continue to advocate on your behalf in making these services as effective as possible and in preserving the taxpayer’s ability to have face-to-face conferences. See links to past letters to the IRS.



I don't think that having a virtual conference service is an accurate methodology in dealing with Appeals. First off, it eliminates social psychology in getting your point of view across. A lack of body-language, eye contact, gestures & postures, which makes it more difficult to appeal. Second, it is easier for IRS representatives to say "no" over a video conference than it is to communicate those messages in person. Thus, this process makes it easier for one organization to process their disputes, making it harder for people/organizations to appeal.

I would strongly suggest that you seek professional advice from a subject matter expert

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)