IRS Appeals Adds Transparency: Taxpayers Can Request Memos

The IRS has quietly issued a major policy clarification: taxpayers are now entitled to receive a copy of their Appeals Case Memorandum (ACM) upon request.

Announced via the National Taxpayer Advocate’s office and highlighted by Journal of Accountancy, the shift marks a notable change in transparency from the IRS Office of Appeals—a critical, and often opaque, part of the tax controversy process.

For tax professionals representing clients in disputes, this is a procedural game-changer.

What Is an Appeals Case Memorandum (ACM)?

An ACM is a detailed internal IRS document created by the Appeals Officer summarizing:

• The facts of the case

• Arguments from both sides

• Legal authorities cited

• The rationale for the Appeals Officer’s final determination

  
  

Previously, taxpayers and their representatives had limited or no access to this document—especially in cases that did not escalate to litigation.

Now, the IRS has clarified that post-closing (after a resolution is reached), the taxpayer may formally request and obtain the ACM.

Why It Matters for CPAs and Tax Attorneys

1. Transparency Enhances Representation

Access to the ACM allows practitioners to:

• Understand the specific logic behind an adverse ruling

• Spot procedural flaws or overlooked facts

• Identify how certain authorities were weighed over others

  
  

This helps with both future audit planning and evaluating litigation or refund claim potential.

2. Training Tool for Controversy Practice

The ACM gives insight into the IRS’s decision-making framework, making it an excellent resource for training new associates or preparing clients for future dispute resolution processes.

3. Supports Procedural Fairness

This clarification aligns with long-standing requests from the Taxpayer Advocate Service, which has pushed for greater procedural visibility to ensure fair treatment of taxpayers—especially those with limited legal resources.

Limitations and Considerations

• Timing matters: The ACM is only available after the case is closed, meaning it cannot be used to negotiate during the appeal.

• Redactions possible: Portions may be redacted if they reference third-party taxpayers or confidential sources.

• Not automatic: Taxpayers (or their representatives) must proactively request the document usually via written letter or as part of a FOIA request.

  
  

Strategic Takeaways for Tax Professionals

• Add a closing step to every appeals case: request the ACM for internal learning or client documentation.

• Advise clients that access to reasoning is now possible—even if the result was unfavorable.

• Build a memo bank: Collect and analyze ACMs across different case types to better predict IRS reasoning and develop stronger positions.

  
  

What’s Next?

This change reflects a broader shift in tone from the IRS Office of Appeals, which has long been criticized for operating as a “black box.” As compliance and enforcement efforts increase, transparency initiatives like this one will be crucial in balancing taxpayer rights and government authority.

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