crm minnesota 4 27-2011
TRANSCRIPT
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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.
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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?
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
SMALL BUSINESS AND SELF EMPLOYED Examination
General Estate and Gift
Classification Process Owner
Collection Counsel
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
TAX EXEMPT AND GOVERNMENTAL ENTITIES ESOP’s Related for Profit Entities Gifts in Kind Services Provided Reasonable Compensation
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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;
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
WHAT DO YOU THINK? Who Owns the Case? Who Manages the Case? Let’s Discuss Some Examples
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
LET’S TALK ABOUT MEDIATION
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
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
4/27/2011
Michael Gregory Consulting LLC www.mikegreg.com ©
WHAT ARE YOUR THOUGHTS AND QUESTIONS
4/27/2011