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October 2017

IRS Appeals Got the Message; Issuing New Guidance on In-Person Conferences

For more than a year, TSCPA’s Federal Tax Policy Committee and the tax professional community have expressed concerns with IRS Appeals’ changes that made telephone appeals conferences the primary method over in-person conferences. Appeals recently announced that it will roll back some of those changes, returning to the general rule to provide taxpayers with in-person appeals conferences in field cases. That liberalization will not apply to service center-generated cases. The IRS has indicated that it will release interim revised guidance soon.


TSCPA’s committee advocated for taxpayers’ rights in Appeals proceedings, including for in-person conferences, in a letter dated May 13, 2016, and a joint letter with the Texas State Bar Tax Section’s Committee on Governmental Submissions dated Jan. 24, 2017.

Treasury Takes Action on TSCPA Recommendations

On Tuesday, the U.S. Department of Treasury released its second report in response to Executive Order 13789 to reduce burdensome tax regulations. Treasury Secretary Steven Mnuchin is recommending significant action on two of the rules that TSCPA’s Federal Tax Policy Committee listed in its letter dated Aug. 2, 2017.

Treasury will withdraw proposed regulations under Section 2704 that would negatively impact family-owned and operated businesses by limiting valuation discounts that may be applicable when businesses are transferred from one generation to the next.

Treasury also would revoke the final and temporary Section 385 documentation regulations and replace them with streamlined documentation rules. The effective date would be set to allow time for public comments and for businesses to be prepared to comply with the new rules. The streamlined documentation rules are expected to address ordinary trade payables and the reasonable expectation of ability to pay indebtedness. Treasury has also identified other regulations to modify or appeal.

See the report and TSCPA’s letter: