The IRS is not like the authority figures of your childhood.
That’s because, unlike your parents, it pays to argue. If you disagree with the IRS about your taxes, you have the right to challenge their decision through a tax appeal.
Many people assume that IRS decisions are final, but you actually have options to contest them… especially if you know they got something wrong. Believe me, it happens.
If you decide to fight back against the IRS’s interpretation of deductions, income reports, or tax liabilities, you can initiate a tax appeal. This process traditionally involves navigating a complex, time-consuming appeals procedure.
But there might be an alternative that I’ve seen work for some of my Mount Vernon clients that could work for you too: Fast Track Settlement (FTS) pilot programs.
The FTS program offers an alternative to the traditional tax appeal process, allowing for a quicker resolution to your dispute through mediation rather than lengthy litigation.
By resolving IRS disputes through a mediator instead of going to court, the amount of time it takes to get a decision (often the biggest source of frustration) is cut down significantly. Here’s what this alternative dispute resolution program is bringing to the table:
- Issue-by-issue eligibility for Fast Track Settlement. Prior to this, when one ineligible issue was present, your entire case would be deemed ineligible for FTS. Now, you can settle specific issues separately, streamlining the process. This aligns the Large Business and International (LB&I), Small Business and Self-Employed (SB/SE), and Tax Exempt and Government Entities (TE/GE) divisions.
- Use of both Fast Track Settlement and Post-Appeals Mediation (PAM) concurrently. Previously, choosing FTS meant losing access to PAM, but not anymore.
- Executive review for denials. Now, if the IRS denies you access to these programs, a higher level of oversight kicks in, ensuring a more consistent and deliberate consideration. Plus, there’s the “Last Chance FTS” pilot for small businesses and self-employed individuals, allowing late access after receiving a 30-day letter.
So, why does this matter? Well, the IRS Fast Track Settlement program is designed to resolve cases within 120 days. Your time is money, so the difference between you waiting 18 months to settle your tax debt versus 3 months with an Alternative Dispute Resolution process could really change the game for you.
For you, that means less stress, lower costs, and a reduced risk of prolonged IRS scrutiny on your tax situation.
But, there is a common denominator between Fast Track Settlement and the traditional appeal process: strong documentation. No matter how you choose to dispute your case, clear records and a reasonable argument go a long way.
Understanding your rights to a tax appeal can significantly affect how you handle disputes with the IRS. So, if you’re facing an audit or dispute, these alternative dispute options could be a better choice.
And they’ll be available until January 15, 2027. So now’s a good time to act on them.
Are you facing an audit or dispute? I can help you like I’ve helped other Westchester County clients. Let’s discuss how FTS and PAM can streamline your tax appeal process and help you resolve your dispute swiftly and effectively. A faster settlement means you spend less time dealing with the IRS and more time focusing on the things you enjoy.
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Resolving your tax problems faster,
Lynn Karam