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IRS Appeals Chief Torn Over Future Of Exam Pilot Program

By Joshua Rosenberg · 2020-10-09 18:04:33 -0400

The head of the Internal Revenue Service's Independent Office of Appeals said Friday he was torn over whether to permanently implement a now-discontinued pilot program that invited examination and counsel representatives to take part in the appeals process. 

A third-party contractor is currently collecting feedback on the experiences of pilot program participants, Andy Keyso said during a webinar hosted by Crowell & Moring LLP. Keyso said he was still evaluating the extent to which his division might continue some elements of the program.

"I will tell you sometimes I lie awake at night thinking about this one," he said. "And it's kind of hard to get to sleep because there are good arguments on both sides of it."

The program, which ended May 1 after running for approximately three years, was designed to help the agency's Appeals division identify, narrow and resolve factual or legal differences in some of the more complicated cases it received.

Some participants have criticized the program for promoting an adversarial environment in which the agency was essentially forcing mediation. 

Keyso, who was promoted to chief of Appeals earlier this year, said he was torn between maintaining Appeals' independence and the practical benefits he believes can be derived from the program. 

"As I've said before, I think the goal of it is to allow the Appeals team case leader to iron out where the differences between the parties are," he said.

By the same token, "I want to ensure the perception of, that independence is there," he said, adding that he was paying attention to feedback that suggested that if the agency is interested in reviving some form of the program, it should do so on a voluntary basis. 

Keyso also said Friday that he planned to advocate for hiring more employees during the 2021 fiscal year, noting that his division was able to onboard approximately 125 employees this year.

The hires from fiscal year 2020 don't "get us to where we should be," he said.

"I really am concerned about taxpayers getting a timely hearing in Appeals, that there's not a long wait before you can get your case assigned to an appeals officer," he said. "That's why I'd like to make the push this year — where we can and budget permitting, of course — for additional hires."

--Editing by Vincent Sherry.

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