The International Tax Review Quotes Mark Allison: Phase II of the AJAC May Increase U.S. Litigation
The International Tax Review quoted Mark D. Allison regarding Phase II of the Appeals Judicial Approach and Culture (AJAC) project. The main objective of the project is to promote a judicial approach and improve perceptions of the IRS's Appeals division. While the project has been a success, gray areas still exist for taxpayers. For the complete article, please click on the link above to view a PDF.
Excerpt taken from the article.
"It remains unclear the extent to w hich taxpayers may raise new arguments as opposed to new facts, the latter of which could result in the case being sent back to the Examination division for reconsideration or evaluation," said Mark Allison of Caplin & Drysdale. "We have observed this tension in cases w here taxpayers develop new arguments in the protest to the Appeals division in response to the Examination division's proposed adjustments, but w hich the Examination division may assert requires new consideration by its function before the case can be referred to Appeals."
"This creates a circular problem because every time the taxpayer reacts to a new position by Exam it could be view ed as a new fact and the cycle cannot be broken," added Allison.