How does the IRS respond if they are non-acquiescing?

When the IRS is non-acquiescing, it typically means that the agency is choosing not to accept a court’s ruling as a precedent that they will follow in future cases. This non-acquiescence indicates that they may not agree with the court’s interpretation of the law or the outcome of the case but are not necessarily taking further legal action.

Opting to appeal the ruling is a common response in this context, as it allows the IRS to seek a higher court’s review of the decision. By pursuing an appeal, the IRS demonstrates its commitment to contesting the judgment, asserting its position on the interpretation of tax law, and potentially influencing future rulings on similar issues.

This process is important for maintaining consistency in tax administration and contributes to the development of tax law, ensuring that disputes over interpretations can be resolved at a higher judicial level. The other options, such as agreeing with the ruling, issuing new guidance, or publishing new regulations, do not align with the nature of a non-acquiescing stance, which fundamentally involves an active rejection of a court's judgment.