Which of the following describes a typical outcome of an Appeals conference?

• A. An automatic dismissal of the case.
• B. Prosecution of the taxpayer by the agency.
• C. A settlement, a revised determination, or referral to litigation.
• D. No change to the original determination.

Answer: (C)

The main idea is that an Appeals conference is about resolving the dispute between the taxpayer and the IRS without going to court. The typical outcomes reflect that goal: you may reach a settlement, the determination may be revised to reflect the agreements reached, or the case may be referred to litigation if no agreement can be reached. A settlement means both sides agree on how much is due or how the issue is resolved; a revised determination means the agency changes its position based on what was discussed; and referral to litigation means the matter moves forward to the courts for a decision. The other options don’t fit because automatic dismissal or prosecution by the agency aren’t the intended results of an Appeals conference, and while no change to the original determination can happen in some situations, the common outcomes you should expect are those three.