Collection fast track mediation.

• Author: Ely, Mark H.

Mediation in Office of Collection (Collection) cases is an effective tool for taxpayers and practitioners to use in streamlining the case resolution process. Fast Track Mediation (FTM) is now available nationwide to Small Business/Self-Employed Division (SBSE) taxpayers; see IRS News Release IR-2002-80. By virtue of FTM pilot programs conducted in four strategic locations (Denver; Houston; Hartford, CT; and Jacksonville, FL), the Office of Appeals (Appeals) and the SBSE demonstrated successfully that FTM timely resolves Collection disputes. Although FTM is also available in the Office of Examinations cases, this item only focuses on SBSE Collection cases. The FTM process is consistent with Appeals' vision of becoming the premier dispute resolution organization, focused on meeting its customers' needs.

Collection FTM is handled within Appeals' General Appeals branch, where highly experienced Collection-trained Appeals and Settlement officers reside (see Tax Practice & Procedures, "Appeals Collection Developments," TTA, July 2001, p. 487, on Appeals Officer training).

The Collection Workload

Collection cases are now a major portion of Appeals' workload, accounting for roughly 75% of Appeals' current total inventory of about 55,000 cases. This is a departure from the traditional Appeals' caseload and (as discussed below) presents unique planning opportunities for practitioners. As a result, Appeals implemented an initiative to effectively address the continuously increasing Collection case inventory. The Collection Currency Initiative focuses on increasing the overall effectiveness of Appeals personnel to timely resolve Collection cases. Handling the Collection workload has apparently become a major Appeals' priority.

Typical FTM Case Types

The following types of Collection cases are appropriate for FTM:

* Collection due-process cases;

* Non-service-center offer-in-compromise cases; and

* Trust fund recovery penalty cases.

During the FTM process, these cases remain under the jurisdiction of the Office of Compliance. If FTM is unsuccessful, taxpayers can resort to normal appeal rights. Several types of cases are not available for FTM, including issues without legal precedents, service center penalty appeals and industry specialization issues; IRS Pub. 3605, Fast Track Mediation, lists all cases excluded from FTM.

Appeals Officer Mediation Training

Senior Appeals Officers receive specialized training to serve as Appeals Mediators. Several newly...