Summary and Recommendation: The Summary and Recommendation is the first section of your narrative and is required in all ACMs. It briefly summarizes the issue and the recommendation so the reader understands the bottom line. It is important to say enough to cover all the most important matters, yet still be concise enough that the reader doesn’t feel bogged down in details.

Brief Background:This is an optional section used to describe anything general to the entire issue. Think of this section as a way to give just the basic facts to the reader. Save other facts for later, and put them where the reader needs them. Notice that there’s nothing controversial in the section. It simply says enough to give context for what follows.

Discussion and Analysis: This is the main section for a detailed discussion of any issue. Along with the Schedule of Adjustments and the initial framing of the issue, this section also serves as a rough draft ACM. Make this section clear and concise by providing yourself and the reader with a blueprint or outline of the discussion to follow. In a complex issue discussion, good structure is essential.

My Evaluation: After a lengthy issue discussion, this section serves as a recap of the relevant factors and the weight assigned to each. This analysis clearly illustrates the settlement rationale and is particularly important on complex issues and those with hazards of litigation settlements.

Plain English has widespread acceptance as the language of business. It should be used in all Appeals writings.

Consider who the readers are when preparing the ACM. The primary reader is almost always the Appeals Team Manager (ATM), so tailor the discussion to his or her needs.

Sometimes there are important secondary readers. For example, if a case is unagreed, consider providing additional information in the ACM that is helpful to Counsel. However, the focus of the ACM must remain with the primary reader.

There are techniques of plain English available to help write more clearly while developing writing skills. This brief introduction summarizes some of those techniques for developing style, organization and layout.

Plain English urges the write to write the way they talk. Ask the question, "How would I say the words if my reader were standing in front of me?" Then use those words when writing.

There is some concern that a conversational tone is inappropriate for professional writing. The tone used in some conversations is inappropriate. But if the same tone is used in writing that is used in speaking face-to-face, the tone is generally appropriate.

Use these techniques to write in a conversational style:

Write narratives using a professional tone. As Appeals employees, facts and evidence are objectively reviewed. Never make disparaging remarks about the taxpayer or the examiner. Rather than saying, "It is ludicrous that anyone would raise this issue," say, "The issue is without merit" .

Consciously strive to keep the main point in front of the reader. It is best to have the main message up front, and to provide breaks in the text that point out each new main message.

Keep the message impossible to overlook. The prescribed format for ACMs helps emphasize the main points.

Think of good layout as one that shows the reader good organization. A good layout labels topics and uses white space to show subordination and new sections.

Format for ACMs use these techniques for layout.

Graphics designers use the "dollar bill rule" - you should be able to put a dollar bill vertically on any page of a well-designed document, and the bill will cover headings, a list, or some other significant white space.

Form 5402 is found on ACDS in APGolf under the name " 5402 – Customize" . The non-customized version is no longer acceptable because it does not record and save information for sharing with the operating divisions and it is not pre-programmed with the most up-to-date processing instructions for APS.

The Utilities menu on ACDS contains the instructions for completing each variation of the Form 5402. A list of the names and phone numbers of the analysts responsible for the upkeep of each type of Form 5402 is also located there.

When selecting "5402 – Customize" , the forms generator in APGolf recognizes the category, type, source, and feature codes and opens a form specifically tailored for the selected case.

The form automatically loads with the taxpayer name, address, TIN, tax periods, feature codes, project code, category code, type code and any other relevant information contained in the ACDS case record.

After opening the form, do a data accuracy check of all information automatically loaded into the form. Data accuracy is an important component of the customized Form 5402. Data errors or missing data may cause an incorrect variation of the Form 5402 to open.

Type codes and feature codes are important. If there are errors in the data or if a type code or feature code is missing, follow established procedures and request APS make the update or correction unless you can do it yourself through CARATS. All data errors must be corrected before preparing and submitting the final Form 5402.

Each variation of the form contains mandatory entries. These entries ensure accurate and complete processing instructions are provided to APS and ensures necessary data is gathered for sharing with the operating divisions.

If a mandatory entry is overlooked when preparing the form, APGolf will not generate the form. A box opens on the screen saying, "Please enter…" This message is received until all mandatory items are completed.

An example of a mandatory entry is the ARDI code. Once all mandatory items are complete, the form will generate.

Sometimes everything that needs to be said about the case fits into the Remarks Section of the Form 5402. In these instances, the Form 5402 serves as the entire ACM. Three examples are described below.

Very simple agreed case:

Full concession by the taxpayer:

Full settlement by Exam upon re-involvement with the case:

Always use Form 5402 to alert the ATM and/or Appeals Processing Services (APS) employee of significant items on the case that need to be addressed promptly.

Appeals Team Managers (ATM) outside of ATCL operations will forward ACM’s and Form 5402 via encrypted E-mail to a centralized point of contact within LMSB. The Outlook mailbox set up by LMSB to receive the documents is: lmsb.acm.distribution@irs.gov. The ATM will also forward copies of the documents via encrypted E-mail to the LMSB Team Manager. The E-mail to the encrypted LMSB Outlook mailbox and the LMSB Team Manager will include in the subject line the Appeals Work Unit Number (WUNO) assigned to the case.

APGolf Form 5402 will automatically populate for Primary Business Codes 301 - 306 with routing information for ATCL and non-ATCL feedback routing instructions to LMSB.

List issues in an order that makes sense for the case. For example, start with the most significant issue, or group related issues.

If the Schedule of Adjustments serves as the instructions to the Tax Computation Specialist it is important to list all issues even if they were not protested.

This is the issue description. Be specific, as illustrated in the following examples.

Use this section to identify unusual items such as:

Use the Schedule of Adjustment for more than one tax period.

This is an adjustment to an income item, deduction, credit, penalty, or tax. Substitute a word, such as "applies" , if a dollar amount doesn’t work. See IRM 8.6.2.4.5.

The Examiner’s Adjustment is generally the only column that can be completed when doing a rough draft Schedule of Adjustments.

This column illustrates the addition or subtraction necessary to get from Examiner’s Adjustment to Appeals Adjustment. Show in brackets the reductions to Examiner’s Adjustments.

If a dollar amount doesn’t work, substitute a word, such as "sustained" or "conceded" . See the example below.

If the issue is unagreed, use this column to show the settlement proposal. Footnote those proposed settlements the taxpayer didn’t accept.

This is the revised adjustment to the return for an income item, deduction, credit, penalty, or tax after Appeals consideration. If a dollar amount doesn’t work, use a word. If the issue is unagreed, write"unagreed" in this column.

In some instances ACM codes are used instead of narrative explanations for issues, except when the issues are settled based on hazards, issues are raised other than computational or automatic adjustments, or if the substantiation is oral testimony.

The Summary and Recommendation is the first section of the narrative and is required in all ACMs. It briefly summarizes the issue and the recommendation so the reader understands the bottom line. It is important to say enough to cover all the most important matters, yet still be concise enough that the reader doesn’t feel bogged down in details.

If the issue is simple, this section may be all that is needed. Include a summary and brief analysis of what the taxpayer and examiner did or said. Also briefly state the rationale for your recommendation. Include what the hazards to the government are and how they affect the settlement.

This is an optional section used to describe anything general to the entire issue. Think of this section as a way to give just the basic facts to your reader. Save other facts for later, and put them where the reader needs them. Notice that there’s nothing controversial in the section. It simply says enough to give context for what follows.

This is your main discussion, so it needs a clear structure. This is also the section of the ACM that you will concentrate on while preparing a rough draft.

This section gives the essence of both sides’ contentions, sets out new information provided at the conference, and analyzes the law and applicable case law arguments. Briefly and clearly present each main point, which will become a heading for a subsection. In this way, you will have a blueprint for you discussion.

Present the discussion in an order that is best suited for the issue. Some methods to consider are to:

If the examiner and the taxpayer have presented case law arguments, it is important for you to distinguish the citations, comparing them and their applicability to the facts of the issue. If you need to analyze an issue or point of law in depth, give your analysis completely, but without boilerplate or unnecessary verbiage.

Use this section to support the proposed resolution framed in your Summary and Recommendation section. Normally, this section will be necessary for issues which are: