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Irs Fast Track Mediation Program

The IRS has given us another handy item for our box of tax resolution tools in the form of the newly created New Fast Track Mediation Program (FTMC). The IRS replaced its old fast track mediation process and created a new program, entitled "SB/SE Fast Track Mediation-Collection (FTMC)." [SB/SE = small business/self employed]. This new program is directed at resolving offer-in-compromise and trust fund recovery penalty disputes.

The old mediation that has been replaced was only available to taxpayers whose cases were being handled by the Examination Divivion and did not provide an opportunity for expedited appeals dispute resolution for taxpayers whose cases were being handled by the Collection Division. With the new program, an IRS Office of Appeals mediator serves as the neutral. The mediator does not have settlement authority and will not render any decision.

The program is only to be used where the issues being mediated are fully developed and have clearly defined positions so the dispute can be resolved in 30 to 40 days. Participation in FTMC is optional for both the IRS and the taxpayer.

This new mediation program is designed to speed up resolution of legal and factual issues plus specific categories of issues including:

  • Asset valuation,
  • Dissipated assets,
  • Deviaitons from expense standards,
  • Proportionate interest in jointly held assets,
  • Projections of future income,
  • Allocation of shared living expenses shared,
  • Doubt as to liability,
  • Other factual determinations,
  • Special issues regarding Trust Fund Responsible Person (TRFP) cases

Other types of cases are not eligible for Fast Track Mediation Program (FTMP), including:

  • Issues requiring assessment of the hazards of litigation,
  • Cases referred to the Department of Justice,
  • Cases worked at an SB/SE Campus site,
  • Collection Appeals Program (CAP) cases,
  • Collection Due Process (CDP) cases,
  • Frivolous issues,
  • Collection cases in which the taxpayer has failed to respond to IRS communications or submit documents,
  • Certain types of OIC cases, and
  • Issues for which mediation would be inconsistent with sound tax administration.

For more details see Rev. Proc. 2016-57.

Time will tell how often this new tool will come in handy for tax resolution professionals and for the taxpayers they represent.

- a qualified tax professional

Written by Tax Professionals

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