Crm minnesota 4 27-2011

ISSUE AT THE IRS CORPORATE

LEVEL AND LESSONS LEARNED

Michael Gregory

Michael Gregory Consulting LLC for

CRM Minnesota April 27, 2012

Michael Gregory Consulting LLC www.mikegreg.com ©

PRESENTER Michael Gregory, Chief Manager,

Michael Gregory Consulting LLC since September 12, 2011

Formerly IRS 28 Years as Engineer and Valuer, Manager, Operations Team Lead, Controller, Acting Assistant District Director, Territory Manager

ASA, AVA, MBA, PE, Qualified Neutral

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MICHAEL GREGORY CONSULTING LLC Risk Management with IRS Alternative Dispute Resolution -

Mediation Strategic Planning Could be of Service to You and Your

Clients [email protected] 651-633-5311

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mailto:[email protected]


DISCLAIMER The opinions presented here are those of

Michael Gregory. Michael Gregory does not represent the IRS. Any opinions presented in this seminar are those of the author and do not represent an official position of their current or previous employers. This material is offered for educational purposes only. The author and his employer expressly disclaim any liability, including incidental or consequential damages, arising from the use of this material or any errors or omissions that may be contained in it.

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TODAY’S PRESENTATION Background on IRS Mediation Officially at the IRS Some Case Examples of Conflicts Mediation Defined and Applied from a

Practical Perspective at the IRS Discussion

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IRS What Does the IRS look like to you?

Mailbox with a slit to receive your tax return?A tax collector and what does that mean?An agency there to help you?Taxes are what we pay for a free society thank goodness the agency promotes voluntary compliance?

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IRS Eleven Divisions – Note all of this

material on the IRS can be obtained at irs.gov

Compliance – Four Divisions Appeals Counsel – IRS and DOJ Tax Litigation

Division Taxpayer Advocate Office Equity Diversity and Inclusion Others

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IRS.GOV Businesses Starting a Business Operating a Business Closing a Business Employer ID Numbers Small Business Events Industry Professions Audit Technique Guides – Aerospace to

Wine

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LARGE BUSINESS AND INTERNATIONAL Six Industries and One Support Function CTM, FS, HMT, NRC, RFPH, GHW, Field Specialists

Engineering and ValuationEmployment TaxComputer Audit SpecialistsFinancial Products

Counsel

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SMALL BUSINESS AND SELF EMPLOYED Examination

General Estate and Gift

Classification Process Owner

Collection Counsel

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TAX EXEMPT AND GOVERNMENTAL ENTITIES ESOP’s Related for Profit Entities Gifts in Kind Services Provided Reasonable Compensation

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APPEALS Case Closes Out of Examination

Unagreed and Goes to the Internal IRS Appeals Divisions

Goal to Settle Cases 85% Target (Historically) Independent Ex Parte Rules

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COUNSEL IRS Office of Chief Counsel

Appointed by the President Operations Technical

All Non Litigation Work (legislative, regulation, interpretation)

Corporate International Technical Advice

IRS Division Counsel IRS Special Trial Counsel DOJ Tax Litigation Division

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TAXPAYER ADVOCATE OFFICE At Least One in Every State –St. Paul Independent Organization to Help

Taxpayers with Problems Address – economic harm, delay over 30

days, not received by date promised by the IRS

Free, Confidential, Listen, Help 1-877-777-4778 or TTY/TTD 1-800-829-

4059;

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EQUITY DIVERSITY AND INCLUSION Formerly Equal Employment Opportunity

and Diversity Mike on EEOD Advisory Counsel for the

Commissioner for Four Years Promote Diversity and Address Diversity

Issues Example Later

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WHAT DO YOU THINK? Who Owns the Case? Who Manages the Case? Let’s Discuss Some Examples

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DISCUSS SOME EXAMPLES OF CASE CONFLICTS SBSE Examination Case with E&G on

Exam SBSE Examination Case with Counsel SBSE Case at Appeals TEGE Case with Related Entities

Credit Counseling, Reasonable Compensation

Hospitals, Physician Practices, Universities LB&I Stock Options and Stock Valuations LB&I Purchase Price Allocations

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LET’S TALK ABOUT MEDIATION

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MEDIATION AT THE IRS Officially at Appeals – Hazards of

LitigationRevenue Procedure 2009-44Fast Track Mediation

• Officially with SBSE - Recommendations IRSAC

Unofficially During Examination – ManagerLegally Focused Client Based

Specialists

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DISCUSS MEDIATION EXAMPLES Budget Division Chiefs Research Credit 4 Days Valuation Issue Relief From Royalty

MethodRoyalty Rate, Discount Rate, Time Period

Reasonable Compensation EEOD Manager Employee

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IMPORTANT TAKE AWAY INFORMATION Know Who Your Working with at the IRS Understand the Role of Participants Seek to Understand Interests

Model: Facts, Issues, Feelings, Interests, Alternatives, Solutions either Client Based or Legally Focused

Do Not Be Afraid to Ask Questions Consider Options

Ask for Appropriate Party Ask to Elevate in Management as a Neutral

Party Given Ownership of the Issue by the RA or ETA

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HOW TO WORK WITH THE IRS – FIELD SPECIALISTS AND REVENUE AGENTS

IRS official and unofficial workings at the IRS

Classification Technical Chapters on Engineering and

Valuation Issues Issue Resolution and Mediation Strategic Thinking and Growth Areas for

Business Valuers and Mediators

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HOW CAN YOU AS A MEDIATOR HELP A CLIENT? Realizing Many Issues in Corporate Tax

are Gray by Design Listening to Both Parties Looking for Common Ground by Asking

Questions Client Based Focus Remaining Neutral

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WHAT ARE YOUR THOUGHTS AND QUESTIONS

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