Compromise settlement reference manual

All settlements requiring reference to the Joint Committee on Taxation must be approved by the Assistant Attorney General. The redelegations pursuant to this section shall be by memorandum signed by the Section Chief, which shall be placed in the Department of Justice file for the applicable case. A sample form of such a memorandum is set out in the Appendix as Exhibit B. The Chief of the Appellate Section is authorized, provided that such action is not opposed by the Internal Revenue Service, or by the chief of the section in which the case originated , to:.

In any Supreme Court case, the final action on an offer in compromise must have the approval of the Solicitor General. In any case in which the Solicitor General has authorized an appeal to any other court, a compromise offer, or any other action which would terminate the appeal, may be accepted or acted upon only upon advice from the Solicitor General that the principles of law involved do not require appellate review in that case.

The Chief of the Office of Review is authorized, provided that such action is not opposed by the Internal Revenue Service, or the chief of the section to which the case is assigned , to:. With respect to judgments which have been formally referred to the United States Attorney for collection, and provided that such action has the concurrence in writing of the Internal Revenue Service , United States Attorneys are authorized to:.

Additionally, United States Attorneys are authorized to release the right of redemption of the United States in respect of tax liens, arising under 28 U. First, when, for any reason, the compromise or concession of a particular claim, as a practical matter, will control or adversely influence the disposition of other claims totaling more than the respective amounts designated, the case shall be forwarded for review at the appropriate level for the cumulative amount of the affected claims.

Second, when, because of the importance of a question of law or policy presented, the position taken by the Internal Revenue Service or by the United States Attorney involved, or any other considerations, the person otherwise authorized to take final action is of the opinion that the proposed disposition should be reviewed at a higher level, the case shall be forwarded for such review.

The terms of settlement are set forth in our letter to the [proponent] [United States Attorney]. The administrative file s [ is are returned herewith] [ has have been forwarded to Special Procedures].

There are enclosed one copy each of our letters of this date advising the [proponent] [United States Attorney] and [District] [Chief] Counsel, Internal Revenue Service, of the acceptance of the offer in the above-entitled case.

A copy of the judgment is enclosed. The Trial Attorney has the primary responsibility on an ongoing basis of evaluating the litigation potential and, thus, the settlement potential of a case. It is the Trial Attorney who negotiates a compromise, prepares the written justification therefor, and, in the subsequent correspondence and implementation of a settlement, assures that the Government gets all that it bargained for and gives away no more.

While there are some cases that should be litigated rather than settled and others that, ideally, should be settled but that, for one reason or another, cannot be, the Division settles many cases in whole or in part. Compromises result when the terms negotiated are both just and in the Government's best interests. Under the provisions of section of the Internal Revenue Code, any overpayment may be credited against any other tax liability of the person who made the overpayment.

Box , Washington, D. Subject to the provisions of Section of the Internal Revenue Code, you are authorized to issue a refund of the amounts of tax, interest, or penalties, if any, shown above or on the computation as refundable pursuant to the Government concession. This notice of adjustment is issued pursuant to directions from the Department of Justice relative to income tax and interest paid for and Payment of the sum mentioned herein is made and accepted in accordance with the terms of a settlement agreement whereby the case of John Doe v.

Louis, Missouri, three copies each of the completed Notice of Adjustment noting the date of issuance of the refund check or notice of credit, and three copies each of the statutory interest computation.