Can IRS disputes be mediated – Part 2

We addressed this question last week.  I said that the IRS will mediate a great many cases, such as a disputed Offer in Compromise, Trust Fund Recovery cases and most appeals disputes.  However, one cannot use mediation in Collection Due Process cases or cases referred to the Justice Department.  The taxpayer must first propose a solution to a Settlement Officer.  If that person will not work with him, he then appeals the denial to the Officer’s supervisor.  If the issue is still not resolved, the next step is to either file an administrative appeal or request mediation.  You can request mediation even after you file an administrative appeal and you can withdraw from mediation at any time and have the case revert to the appeals division. Most taxpayers will be able to utilize an expedited process called Fast Track Mediation, which is utilized in simpler cases not involving complicated legal issues.