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Jeff Paravano, Paul Schmidt Share Insights Regarding IRS Examiners Joining Appeals Talks

News / August 29, 2017

Partners Jeff Paravano and Paul Schmidt are quoted in an article published Aug. 28, 2017, in Bloomberg BNA’s “Tax Notes.” The article, “Concerns Rise on IRS Letting Examiners Attend Appeals Talks,” discusses how companies are growing concerned about a new IRS initiative that allows tax examiners to be actively involved in discussions when their cases go to IRS Appeals.

Schmidt told Bloomberg, “I think people are dismayed. The new process is a signal of reducing the function and independence of Appeals that is a really unfortunate thing.”

Paravano said he expects it would be “a fairly rare occurrence” for appeals leaders to invite examiners to join their case negotiations, and might even be helpful in some cases to iron out factual disagreements. However, if the disputes are based on legal principles, that would make it a tougher haul, he said. Schmidt added that taxpayers also may have a say in the process. In one case, he said, “I was offered to have Exam there and I said no. I wasn’t forced into it. But I think that’s something that is evolving.”

Paravano noted that IRS exam seems to have been anticipating this program for some time: “We have seen many requests from [IRS] Compliance to be in the room after the case handoff.”

Read the article (registration required).