[Federal Register Volume 59, Number 108 (Tuesday, June 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13813]


[[Page Unknown]]

[Federal Register: June 7, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service
[Delegation Order No. 236]

 

Delegation of Authority

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Delegation of authority.

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Summary: The Delegation Order is extended to rollover and recurring 
issue settlements effected by Appeals with respect to the same taxpayer 
in the previous or subsequent tax periods.

EFFECTIVE DATE: June 3, 1994.

FOR FURTHER INFORMATION CONTACT: Harry E. Lebedun, CP:EX:C:C, Room 2032 
1111 Constitution Avenue NW., Washington, DC 20224, (202)-622-3373 (not 
a toll free number).

    Order No. 236 (Rev. 1).
    Effective Date: 6-3-94.
    Settlement Authority for Examination Case Managers.

    The authority vested in the Commissioner of the Internal Revenue by 
Treasury Order Nos. 150-04, 150-09 and 150-10 and the authority 
contained in 26 U.S.C. & 7121 is hereby delegated as follows:
    1. All District Directors, Examination division chiefs, Examination 
branch chiefs, and Examination case managers are delegated 
discretionary authority under section 7121 of the Internal Revenue Code 
to accept settlement offers, regardless of the amount of liability 
sought to be compromised, with respect to rollover and recurring issues 
in Coordinated Examination Program cases where a settlement on the 
merits has been effected by Appeals with respect to the same taxpayer 
in a previous or subsequent tax period. Prior to finalization, the 
proposed settlement, together with any related closing agreement or 
Form 870AD, shall be substantively reviewed and approved by the 
appropriate branch chief within the Examination function.
    2. For purposes of this delegation of limited settlement authority, 
the terms ``rollover'' and ``recurring'' issues are defined as follows:
    (a) A ``rollover'' issue involves an adjustment arising from the 
same legal issue in the same transaction or taxable event and impacts 
more than one tax period. For example, the rate of amortization or 
depreciation of an asset, bad debt losses, basis and inventory 
adjustments and the like, when related to the same transaction and 
which affect future tax periods, would be susceptible to case manager 
settlement where a settlement on the merits has been reached in Appeals 
in a previous tax period with respect to the same taxpayer.
    (b) A ``recurring'' issue involves an adjustment arising from the 
same legal issue in a separate transaction or a repeated taxable event 
in which the taxpayer advances the same legal position with respect to 
such similar transaction or repeated taxable event as advanced by such 
taxpayer in a prior tax period. For example, the method of depreciation 
with respect to similar assets, the use of the same accounting method 
with respect to similar transactions, the annual computation of such 
deductions as depletion, the computation of certain tax credits and the 
like, when advanced by the same taxpayer in later tax periods would be 
susceptible to case manager settlement where a settlement on the merits 
has been reached by Appeals in a previous tax period with respect to 
the same taxpayer.
    3. No settlement shall be effected unless the following factors are 
present in the tax year currently under Examination jurisdiction:
    (a) The facts surrounding a transaction or taxable event in the tax 
period under examination, including the relative amounts at issue, are 
substantially the same as the facts in the settled period.
    (b) The underlying issue must have been settled on its merits 
independently of other issues in a previous or subsequent tax period by 
Appeals.
    (c) The legal authority relating to such issue must have remained 
unchanged.
    (d) The issue must have been settled in Appeals with respect to the 
same taxpayer (including consolidated and unconsolidated subsidiaries) 
in a previous tax period.
    4. All District Directors, Examination division chiefs, Examination 
branch chiefs, and Examination case managers are delegated authority to 
execute closing agreements and the Form 870AD in order to effect any 
final settlement reached with respect to any rollover or recurring 
issue in a Coordinated Examination Program case.
    5. The authority delegated in this Order may not be redelegated.
    6. The authority contained in this Order is intended to supplement 
the authority contained in Delegation Order No. 97 (as amended).

    Dated: May 21, 1994.

    Approved:
Michael P. Dolan,
Deputy Commissioner.
[FR Doc. 94-13813 Filed 6-6-94; 8:45 am]
BILLING CODE 4830-01-U