What's Happening?
The Internal Revenue Service (IRS) has announced a policy change allowing taxpayers to access Appeals Case Memoranda (ACM) from IRS Appeals Officers. This decision follows persistent advocacy from National Taxpayer Advocate Erin Collins, who has long argued for increased transparency in the appeals process. Historically, the IRS shared these memoranda with its Compliance personnel but not with taxpayers involved in Examination Appeal cases. Collins has highlighted that withholding these documents undermines the independence and transparency of the appeals process. The IRS has now issued internal guidance to remind employees to share ACMs with taxpayers upon informal request, although the documents may be heavily redacted.
Why It's Important?
This policy shift is significant as it enhances taxpayer rights and transparency within the IRS appeals process. By allowing access to ACMs, taxpayers and their representatives can better understand the rationale behind appeal decisions, potentially leading to more informed and fair outcomes. This move could also increase trust in the IRS by demonstrating a commitment to accountability and openness. However, the effectiveness of this change may be limited by the extent of redactions in the memoranda, which could restrict the usefulness of the information provided.
What's Next?
The IRS's decision to share ACMs is a step towards greater transparency, but further reforms may be necessary. Collins advocates for limiting redactions to only sensitive or privileged content and for automatically providing ACMs to taxpayers at the conclusion of each case. These additional measures could further enhance the independence and transparency of the appeals process, ensuring that taxpayer rights are fully respected and upheld.
