Table Of Contents

     
  1. Introduction
  • Settlement Authority
    1. The Attorney General, Deputy Attorney General, and Associate Attorney General
    2. The Assistant Attorney General
    3. Joint Committee on Taxation
    4. Trial Section
    5. Appellate Section
    6. Solicitor General
    7. Office of Review
    8. Deputy Assistant Attorneys General
    9. United States Attorneys
    10. Conditions and limitations on settlement authority
    11. Determination of settlement jurisdiction amounts
    12. Classification of cases as "Standard" or "Settlement Option" ("SOP")
    13. Internal Revenue Service authority to settle bankruptcy cases -- the exception to the general rule
      1. The general rule
      2. Internal Revenue Service authority to settle bankruptcy cases
        1. Before or after objection to a proofof claim has been filed
        2. Before an objection to a proof of claim has been filed
        3. After an objection to a proof of claim has been filed

  • The Settlement Process
    1. Policy and practical considerations
      1. Settlement versus litigation: In general
      2. The need for preparation
      3. The need for communication with the IRS
      4. Concessions -- the Trial Attorney's role
    2. Initial matters to be considered regardless of the likelihood of settlement
      1. Collection cases and counterclaims
      2. Refund cases
        1. Offsets
        2. Double allowances in other years or with respect to other taxpayers
        3. Equitable recoupment
      3. Employment tax cases
    3. Negotiation
      1. Basic principles
      2. Formal settlement discussions
      3. Settlement conferences with the court
      4. Partial settlements
      5. Factors favoring settlement generally, and factors generally rendering settlement difficult or unlikely
        1. Factors favoring settlement include the following
        2. Factors disfavoring settlement include the following
      6. Attorney fees
      7. Computations
      8. Interest
      9. Section 6402 of the Code
    4. Offer and acknowledgement
    5. Counteroffers
    6. Concessions and administrative settlement
    7. Soliciting the Internal Revenue Service recommendation
      1. Compromises
        1. Standard cases
        2. SOP cases
        3. Taxpayers and/or periods not in suit
        4. The 45-day rule
      2. Concessions
    8. The offer list
      1. The offer list and how it is used
      2. Why the Tax Division cares about the pace of settlement
      3. What an attorney can do to "stay off the list"
    9. Settlement and concession memoranda
    10. Settlement Checklist
    11. Special considerations on submission of case to Office of Review
    12. Responsibility of the Assistant United States Attorneys in Tax Division cases
    13. Acceptance letters and other correspondence
    14. Issuance of refunds
      1. Preparation of Forms M-4457 authorizing issuance of refund
      2. Verifying correctness of the refund check whether the refund is pursuant to settlement or judgment

  • Offset, Double Allowances -- Mitigation of Limitations, and Equitable Recoupment
    1. Offset
    2. Double allowances -- mitigation of limitations (§§ 1311-1314)
      1. Sections 1311-1314 -- an overview
      2. Illustration
      3. Pertinent considerations re applicability of the mitigation provisions
      4. Where mitigation does not apply
    3. Equitable recoupment
      1. The general principle
      2. Estate tax-income tax interrelationships
      3. Employment taxes

  • Collectibility settlements
    1. General considerations
    2. Sources of financial information
      1. Statement of financial condition and other information
      2. Income tax returns
      3. Applications for loans
      4. Taxpayer-owned businesses
    3. Terms of settlement
      1. Cash payments
      2. Collateral agreements
        1. Contingent payments based on future income
        2. Waiver of carryover of losses and credits
      3. Taxpayer's residence
      4. Alternatives to a collateral agreement
      5. Waiver of deductions or credits
      6. Security for amounts due under compromise
    4. Receipt and monitoring of payments
    5. Acceptance letters and closing cases after settlement
    6. When full payment is made
    7. Default on a settlement

  • Alternative dispute resolution
  • Appendices

    Table of Cases



    &nbsp &nbsp
    Title Page || Contents || Section I || Section II || Section III
    Section IV || Section V || Section VI || Appendices
    Table of Cases and Authorities

    Uploaded March 30, 1998
    usdoj-tax/admin/jcb
    Updated April 6, 2015

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