Rev. Proc. 60-18

In order to provide for prompt action and insure expeditious disposition of cases before the Tax Court of the United States which may be settled; to enable Regional Counsel to stipulate undisputed facts as required by the Tax Court in an orderly manner and make adequate preparations for trial and defense of the Commissioner's determination of tax liabilities; to avoid the rush and delay occasioned by last-minute settlement negotiations; and to facilitate all actions taken in compliance with Commissioner's Delegation Orders Nos. 60 and 66, Chief Counsel's Orders Nos. 1958-5 and 1958-11, the Appellate Division and Regional Counsel will operate under the following procedures:

(1) All docketed cases in which the deficiency notices were not issued by Appellate, except cases in which recommendations for criminal prosecution are pending, will be referred to Appellate by Counsel as soon as they are at issue in the Tax Court. Cases in which the deficiency notices were issued by Appellate will be retained by Counsel for preparation for trial.

(2) Appellate will arrange a conference for settlement purposes promptly after receipt of the file. Except in unusual circumstances, Counsel will be represented at such conference and will actively participate in it.

(3) If a settlement is agree upon by Appellate and Counsel as a result of such conference(s) with the taxpayer, the necessary computation, writeup and stipulation of settlement will be prepared as quickly as possible, so that the stipulation of settlement may be filed with the Tax Court without delay.

(4) If a settlement is not effected as a result of the conference(s) with the taxpayer, or if the taxpayer declines to discuss settlement, the file will be returned promptly to Counsel for preparation for trial and the taxpayer will be so advised by appropriate letter by Appellate.

(5) In the event of disagreement between Appellate and Counsel as to settlement of the case or any issue in the case or with respect to the amount of a counteroffer, if any, which should be made, efforts will be made to quickly resolve the matter if agreement cannot be reached the case will be referred promptly in writing to the Chief Counsel for decision.

(6) During the period between receipt of the Tax Court's `Trial Status Request' (usually issued from 60 to 90 days in advance of the issuance of the trial calendar) and the receipt of the trial calendar (usually issued about 90 days in advance of the opening date of the trial calendar) Appellate will conclude settlement negotiations on all cases not previously settled or referred to Counsel for preparation for trial.

(7) In order to enable Counsel adequately to prepare the cases for trial and stipulate the undisputed facts in all cases on the trial calendar which have not been settled, Appellate will, upon receipt of the trial calendar, return the files still in its possession in all cases on the calendar to Counsel, unless settlement has been agreed upon or Counsel agrees, in writing, that the files may be temporarily retained. Concurrently with any such return of the files, Appellate shall advise the taxpayer by letter that, since settlement negotiations have not been productive, the case is being referred to Counsel for preparation for trial.

(8) Upon receipt of the trial calendar, Counsel will address an appropriate letter to the taxpayer in each case on the calendar which has not been settled, or the files retained by Appellate under the provisions of paragraph (7), or in which the parties are not then negotiating a stipulation of facts. This letter will arrange or suggest a conference at an early date for the purpose of stipulating facts, as required by Rule 31(b) of the Tax Court, to clarify and, if possible, limit the issues.

(9) Any requests for conferences received after receipt of the trial calendar will be referred to Counsel.

(10) These procedures shall become effective with respect to all trial calendars issued by the Tax Court on and after November 1, 1960.

¹ Also released as Technical Information Release 249, dated August 30, 1960.