[Federal Register Volume 61, Number 65 (Wednesday, April 3, 1996)]
[Notices]
[Pages 14852-14853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8030]



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DEPARTMENT OF THE TREASURY
[Delegation Order No. 236 (Rev. 2)]


Delegation of Authority

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Delegation of Authority.

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SUMMARY: The delegation order has been revised to eliminate terms that 
are causing unnecessary confusion in applying the delegation order and 
to expand the scope to include certain directly-related parties to 
covered transactions. The text of the delegation order appears below.

EFFECTIVE DATE: March 15, 1996.

FOR FURTHER INFORMATION CONTACT: Harry E. Lebedun, CP:EX:C:C, Room 
2036, 1111 Constitution Ave., NW, Washington, DC. 20224, (202) 622-3654 
(not a toll free number).
Delegation Order No. 236 (Rev. 2)
    Effective date: March 15, 1996.

Application of Appeals Settlement to Coordinated Examination Program 
Taxpayers

    The authority vested in the Commissioner of the Internal Revenue by 
Treasury Order Nos. 150-07, 150-09 and 150-10 and the authority 
contained in 26 U.S.C. Section 7121 is hereby delegated as follows:
    1. All examination case managers are delegated discretionary 
authority under section 7121 of the Internal Revenue Code to accept 
settlement offers on any issue in a Coordinated Examination Program 
case under their respective jurisdiction. This authority applies, 
regardless of the amount of liability sought to be compromised, where a 
settlement (including a hazards settlement) has been effected by 
Appeals in a previous, subsequent or the same tax period (the settled 
period) with respect to the same issue of the same taxpayer, or of 
another taxpayer who was directly involved in the transaction or 
taxable event. Prior to finalization, the proposed settlement, together 
with any related closing agreement or Form 870-AD, Offer of Waiver of 
Restrictions on Assessment and Collection of Deficiency in Tax and of 
(to be completed by case manager), shall be reviewed and approved by 
the appropriate branch chief within the Examination function.
    2. For purposes of this delegation of limited settlement authority, 
no settlement shall be effected unless all of 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 are substantially the same as the facts in the 
settled period.
    (b) The legal authority relating to such issue must have remained 
unchanged.
    (c) The underlying issue must have been settled by Appeals 
independently of other issues (e.g. no trading of issues) in the 
settled tax period.
    (d) The issue must have been settled in Appeals with respect to the 
same taxpayer (including consolidated and unconsolidated subsidiaries) 
or another taxpayer who was directly involved in the transaction or 
taxable event in the settled tax period.
    3. The criteria in section 2 apply to taxpayers ``directly 
involved'' in the transaction. Illustrations of a taxpayer ``directly 
involved'' in the transaction are as follows:
    (a) Taxpayers A and B are directly involved in the same transaction 
or taxable event in tax period 19xx where A and B would logically 
receive similar tax treatment. Taxpayer A's treatment of the 
transaction is adjusted by Examination and settled in Appeals. The 
adjustment involves the same legal issue with respect to taxpayer B. 
Examination may resolve Taxpayer B's case in a manner consistent with 
the Appeals settlement of Taxpayer A.

[[Page 14853]]

    (b) Taxpayers A and B are directly involved in the same transaction 
or taxable event in tax period 19xx where A and B would logically 
receive similar tax treatment. Taxpayer A's treatment of the 
transaction is adjusted by Examination and settled by Appeals. In 
addition, taxpayer A or B (or both) is directly involved in a separate, 
but similar transaction or taxable event in the same, prior, or 
subsequent tax period involving the same legal issue as above. Such 
issue for taxpayers A or B only may also be settled in a consistent 
manner provided it involves substantially the same facts.
    4. All examination case managers are delegated authority to execute 
closing agreements and the Form 870-AD in order to effect any final 
settlement reached in a Coordinated Examination case.
    5. For settlement authority of Industry Specialization and 
International Field Assistance Specialization Program coordinated 
issues, see Delegation Order No. 247.
    6. The authority delegated in this Order may not be redelegated.
    7. The authority contained in this Order supplements the authority 
contained in Delegation Order 97 (as revised).
    8. Delegation Order No. 236 (Rev.1), effective June 3, 1994, is 
superseded.

    Dated: March 15, 1996.
Michael P. Dolan,
Deputy Commissioner.
[FR Doc. 96-8030 Filed 4-2-96; 8:45 am]
BILLING CODE 4830-01-P