IRS wants to streamline tax disputes with new focus on alternative programs

IRS wants to streamline tax disputes with new focus on alternative programs
Alternative Dispute Resolution Program Management Office formed.
APR 25, 2024

Handling disputes about tax matters with the Internal Revenue Service can be lengthy and stressful but the agency wants to make it easier.

The IRS Office of Appeals has formed a new Alternative Dispute Resolution Program Management Office in a bid to drive up usage of alternative dispute resolution options, which have seen a decline in recent years.

The new office will work with the IRS Business Operating Divisions to provide a more efficient and faster resolution of tax disputes with a more collaborative and cost-effective approach. ADR has been offered at various stages of disputes but will now be given a fresh impetus.

“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,” said IRS Commissioner Daniel Werfel. “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.”

The focus on ADR will include some changes to existing programs such as Fast Track Settlement, Fast Track Mediation, Rapid Appeals Process and Post-Appeals Mediation, but also piloting some new options.

This will include making it easier for taxpayers to access programs such as Post-Appeals Mediation which allows for a new mediator to become involved where parties cannot reach agreement during the appeals process. The IRS wants this option to be available earlier and to clarify and streamline existing guidance.

Taxpayers will still have the option of using the traditional appeal process.

“We’re excited to give our programs the focus they merit,” said Acting Chief of Appeals, Elizabeth Askey. “Michael Baillif, who recently joined Appeals as a senior advisor, will serve as the director of the new office; he has extensive dispute resolution experience in both the private sector and the IRS, and I know he’ll be excellent in this role.”

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