IRS Launches Fast Track Program For Dispute Resolution

by Mike Godfrey, Tax-News.com, Washington

21 November 2001

The United States Internal Revenue Service recently announced the launch of a new program designed to speed up the resolution of disputes between corporate taxpayers and the tax authorities.

The imaginatively named Large and Mid-Size Business Division Fast Track Dispute Resolution Pilot Program is a year-long joint effort between the Office of Appeals and the Large and Mid-Size Business Division (LMSB)of the IRS. It is hoped that the initiative will reduce the length of investigations, thus saving government time and taxpayers money.

Under existing procedures, examinations and appeals occur sequentially, and disputes can sometimes take up to two years to resolve. However, under the fast track program, disgruntled companies will be given two choices. The taxpayer, together with LMSB officials, can either decide that the dispute should be resolved through mediation, at which point an official from the Office of Appeals will step in to ease communication and resolve outstanding issues, or the parties can opt for dispute resolution which involves the appeals official recommending a settlement amount.

Larry Langdon, Commissioner of the LMSB believes that US companies will be pleased with the new program: 'By using Appeals personnel as mediators in the fast track process, corporate taxpayers have more opportunities to speed up the resolution of disputes that arise during audits,' he revealed earlier this week.

Meanwhile, Daniel L. Black, the National Chief of Appeals, sought to soothe the fears of corporate taxpayers worried that their existing rights will be affected by participation in the fast track scheme: 'Taxpayers should also be reassured that their willingness to try to resolve such disputes will not come at the expense of their existing appeal rights,' he said. 'This should be a positive process for all parties.'

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