A review of the IRS Office of Appeals, which resolves disputes between the agency and taxpayers, found officials did not always follow proper procedures when dealing with taxpayers or their legally designated representatives.

A review of a statistical sample of 96 of 72,239 cases closed by Appeals between October 1, 2011 and September 30, 2012, showed that Appeals personnel are generally involving the power of attorneys in case activities.

However, the documentation in case activity records in the ACDS (Appeals Centralized Database System) and in the physical case files that we were able to obtain did not always show that Appeals personnel adhered to procedures that help ensure compliance with the direct contact provisions of the I.R.C. and that taxpayers obtain appropriate and effective representation.

Specifically, we identified the following conditions in 11 of the 96 cases reviewed. Read More