The IRS is attempting alternative dispute resolution options
The Internal Revenue Service has launched a new program to help taxpayers resolve tax disputes earlier and more efficiently. The Alternative Dispute Resolution Program Management Office initiative will collaborate with the agency’s Business Operating Divisions to promote alternate dispute resolution and improve the Internal Revenue Service’s overall functionality and how it serves taxpayers and tax professionals.
According to IRS Commissioner Daniel Werfel, “This new office will revitalize existing programs and pilot new initiatives as part of IRS transformation efforts in alignment with the IRS Strategic Operating Plan.” The new office is being funded under the Inflation Reduction Act, passed in August 2022, to help overhaul the agency.
Though the Alternative Dispute Resolution Program has been available for years as an early resolution option and can be a quicker and more cost-effective approach to case resolution, the IRS reports that the use of the programs has declined over the past 10 years. The hope is that the program will bring awareness and renewed interest in ADRP programs such as Fast Track Settlement, Fast Track Mediation, Rapid Appeals Process and Post-Appeals Mediation and allow the Appeals office to resolve disputes earlier in the exam process. The goal is also to make these programs more easily accessible.",
The formation of the office comes after the agency issued a request for public comments on the issue in July 2023. In particular, the new office aims to remove barriers to participating in Post-Appeals Mediation. This program introduces a new mediator if the parties cannot reach an agreement during traditional Appeals settlement negotiations.
As part of its efforts, the office will also perform outreach and education, raising awareness among tax professionals about ADR's availability. It will also coordinate the training and support of mediators, collect data and monitor the effectiveness of ADR offerings.
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