Mediation.

• Jurisdiction: United States
• Author: Dougherty, James A.
• Date: 01 April 1999

The mission of the Appeals function in the IRS is to resolve tax controversies without litigation, in a manner that is fair and impartial to both the government and the taxpayer. Several programs have been developed to assist in facilitating a timely settlement in Appeals. Appeals has developed alternative dispute resolution (ADR) procedures that assist in resolving tax disputes more productively. An example of such a procedure is mediation.

Mediation is a negotiation between the taxpayer and the Service with assistance by an objective and neutral third party. The mediator has no authority to impose a decision; however, the mediator facilitates communication between the two parties that do have the power to reach a settlement. Mediation is used at the end of the appeals process as a final attempt at resolution before litigation is necessary. The Internal Revenue Service Restructuring and Reform Act of 1998 (IRSRRA '98), as well as the issuance of Announcement 98-99, have increased the interest and awareness in mediation.

Background

The procedures previously used for requesting mediation were outlined in Announcements 95-86 and 97-1. Mediation was only available on Coordinated Examination Program cases generally with disputes of more than $10...