The Internal Revenue Service's Independent Office of Appeals has created an Alternative Dispute Resolution Program Management Office, which will collaborate with the agency's business operating divisions to help taxpayers resolve tax disputes earlier and more efficiently.
The IRS has long offered alternative dispute resolution at various stages of tax administration and resolution, but says use of the programs has declined in recent years, and it hopes to make its ADR programs, such as fast-track settlement, fast-track mediation, rapid appeals process and post-appeals mediation more attractive and accessible.
"We're committed to providing taxpayers who wish to resolve their issues without litigation a choice of early resolution options, and the Alternative Dispute Resolution Program Management Office will ensure taxpayers are aware of those options," said IRS Commissioner Daniel Werfel, in a statement.
Among other things, the ADR PMO will pilot changes to fast-track settlement, a program that allows Appeals to mediate disputes between a taxpayer and the IRS while the case is still in Exam's jurisdiction. The office will also remove barriers to participating in post-appeals mediation, which introduces a new mediator if the parties are unable to reach agreement during traditional settlement negotiations.
The ADR PMO plans to test programs that allow Appeals to help resolve or mediate disputes earlier in the examination process; streamline and clarify existing guidance; and remove barriers for easier access to alternative dispute resolution.
The new office will collaborate with the IRS business operating divisions to perform outreach and education, training and support of mediators, data collection, and monitoring of the effectiveness of ADR programs. The traditional appeal process will also remain available for taxpayers who choose it.
Michael Baillif, who recently joined Appeals as a senior advisor, will be director of the new office, said the acting chief of appeals, Elizabeth Askey.
Proposed ADR enhancements reflect input from stakeholders who submitted comments previously and from recent reports from the
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