Rev. Proc. 82-42

Section 1. Purpose

The purpose of this revenue procedure is to facilitate effective utilization of the administrative appeals process and achieve earlier development and disposition of Tax Court cases either by settlement or trial.

Sec. 2. Changes

This revenue procedure supersedes Rev. Proc. 79-59, 1979-2 C.B. 573, which superseded Rev. Proc. 78-9, 1978-1 C.B. 563.

Sec. 3. Procedures

Cases docketed in the United States Tax Court will be processed under the following procedures:

.01 Docketed cases will be referred by District Counsel (hereinafter "Counsel") to the Appeals Division (hereinafter "Appeals") for consideration of settlement unless the statutory notice of deficiency was issued by Appeals. Cases in which Appeals issued the statutory notice of deficiency may be referred to Appeals unless Counsel determines that there is little likelihood that a settlement of all or a part of the case can be achieved in a reasonable period of time.

.02 Cases involving deficiencies (hereinafter defined to include tax and penalties per taxable period) of more than $10,000 will be promptly returned to Counsel where no progress toward settlement of all or a part of a case is made, or a case appears on the Court's Trial Status Request, unless Counsel agrees to extend the period of Appeals' consideration of the case.

.03 Except as provided in section 3.01, cases involving deficiencies of $10,000 or less, including "S" cases, will be referred to Appeals for a period of six months or until receipt of the notice of trial in regular cases or 15 days before the trial calendar call in "S" cases, if earlier. At the end of the period described in the foregoing sentence or at such time Appeals determines the case is not susceptible of settlement in whole or in part, the case will be returned to Counsel. Where appropriate, Counsel and Appeals may agree to extend the period of Appeals' consideration if there is a likelihood of settlement.

.04 Appeals will have sole settlement authority over docketed cases referred to Appeals pursuant to these procedures until the case is returned to Counsel. Counsel may request return of a case to Counsel when appropriate to allow adequate trial preparation. Whenever a docketed case is returned to Counsel, sole authority to dispose of the case by trial or settlement will revert to Counsel.

.05 After the original transfer of a docketed case from Appeals to Counsel, by agreement between Counsel and Appeals, any docketed case may be transferred from Counsel to Appeals or from Appeals to Counsel, as appropriate, notwithstanding the fact that the case was previously considered by the receiving function. However, this authority will only be utilized when such transfer will promote more efficient disposition of the case.

.06 The petitioner and/or representative will be contacted promptly by the Counsel or Appeals Office receiving the case. This notification will state that the receiving office has acquired sole authority to dispose of the case, through settlement or trial, as appropriate.

Sec. 4. Exclusions

Section 3 shall not apply to cases in which the notice of deficiency, liability, or other determination was issued by Appeals, by the Employee Plans/Exempt Organizations function or by a District Director based on a National Office ruling or technical advice in that case involving qualification of an employee plan or tax exemption and/or foundation status of an organization (but only to the extent the case involves such issue). Section 3 shall also not apply to cases docketed under Code sections 6110, 7428- 7476, 7477, or 7478.

Sec. 5. Effective Date

This procedure will be applicable to all cases docketed in the Tax Court.

Sec. 6. Effect on Other Documents

Rev. Proc. 79-59 is superseded.

¹ Also released as News Release IR-82-83, dated June 25, 1982.