The public is welcome to chime in this month on how the Internal Revenue Service can improve alternative dispute resolution programs for taxpayers.
"The IRS is greatly interested in examining ways to help to reduce the time, costs and administrative burden for taxpayers and the government in resolving tax disputes," said Andy Keyso, chief of the Independent Office of Appeals.
Over the past two decades, the IRS has offered four principal post-filing ADR programs:
Fast Track Settlement for taxpayers under audit and in the jurisdiction of Large Business & International, Small Business and Self Employed, or Tax Exempt and Government Entities Division. An independent Appeals mediator assists the taxpayer and the IRS to agree on disputed issues, facilitate settlement discussions and offer settlement proposals.Fast Track Mediation - Collection for collection cases and issues to help taxpayers resolve disputes resulting from offers in compromise and trust fund recovery penalties. Some collection due process cases and cases worked at a collection campus site are among those excluded from FTMC. Under FTMC, an independent Appeals mediator assists the taxpayer and the IRS to try to reach an agreement on disputed issues.Rapid Appeals Process , available for most LB&I cases or SB/SE estate and gift cases. In a pre-Appeals conference, IRS Appeals uses mediation to try to resolve issues while the case is in Appeals' jurisdiction. RAP is meant to be completed in one conference.Post Appeals Mediation , available if IRS Appeals discussions fail and the remaining disputed issues are fully developed. Cases for which tax disputes have been previously mediated through a different ADR program, such as through FTS, are ineligible, though PAM is available to resolve disputed tax issues that originate from an IRS audit or to resolve disputed tax issues that originate through IRS collection actions.
The IRS is particularly interested in learning about:
- Reasons taxpayers choose not to use these ADR programs and potential modifications to these programs.
- Issues that are currently excluded from these ADR programs that shouldn't be excluded.
- Other ways in which these ADR programs could be improved.
- Suggestions for how best to educate taxpayers and representatives about ADR programs.
- Experiences with the use of mediators from the IRS Independent Office of Appeals, and suggestions for how Appeals can ensure that mediators promote an ADR engagement that is conducive to settlement.
Suggestions are wanted for how to extend the use of these or other ADR programs to taxpayer segments that may be less aware of or familiar with ADR, such as small-business and low-income taxpayers, and whether any unique characteristics of these segments might need modified ADR procedures.
The IRS also wants feedback on:
- Experiences with the IRS when ADR programs were offered or not offered or were denied;
- Whether there are types of cases where ADR has proven particularly useful and how ADR can be increased in these cases; and,
- Ideas to achieve tax certainty or resolution sooner beyond existing ADR programs, including ideas for new ADR programs.
Comments beyond the items above are welcome, as well. They should be sent to
