Does the IRS Mediate?

Many federal government agencies have adopted mediation, including the IRS.

A recent IRS press release announced they are seeking public input on its current alternative dispute resolution programs. According to the release, the IRS is open to suggestions on how to better use dispute resolution techniques in dealings with tax payers.

Currently, two of the agency’s programs employ mediation. Fast Tract Mediation uses an independent approach to help taxpayers and the IRS reach agreement in examination disputes once examiners have completed their work and issues remain unresolved. The IRS describes this process as an “appeals mediator [who] will facilitate settlement discussions and may offer settlement proposals.” However, as in most other forms of mediation, the process is voluntary and if no agreement is reached, the taxpayer may still request a conference or appeal.

A second program, Post-Appeals Mediation, is available to deal with disputes while a case is still under appeal. In this IRS Office of Appeals program the mediator works with the taxpayer and Settlement Officer to reach an agreement. The IRS describes the mediator as “independent of the Appeals Officer” and the taxpayer they are assigned to. Their website sites high ratings for this program. As with other forms of mediation the process is voluntary and the mediator cannot impose an agreement.

To determine if a dispute is appropriate for these programs, consult the IRS website at https://www.irs.gov/appeals/fast-track and https://www.irs.gov/appeals/post-appeals-mediation.