Michigan

IRS Extends Fast -Track Settlement to Small Businesses and Self-Employed Taxpayers

The IRS has extended fast-track mediation of tax controversies to include small business and self-employed taxpayers. The IRS touts its fast-track mediation program as its attempt to meet taxpayer needs by resolving controversy at the earliest resolution point within the IRS. The Large and Mid-Sized Business Fast-Track Settlement program was started in 2002 and is considered a success by the IRS. As a result, the IRS decided to extend the opportunity to mediate tax controversies to smaller taxpayers.

The program has been implemented on a two year trial basis. The initial six-month focus period ran from September 5, 2006, through March 5, 2007. Qualifying small business and self-employed taxpayers in the cities of Chicago, Houston, and St. Paul, Minn., were eligible to participate in the program. The program will be expanded to other cities during the trial period on a staggered roll out basis.

There are a number of benefits to the program. These include a significantly reduced IRS process as well as an assurance that the taxpayer will not be charged ?hot? interest under IRS section 6621. If the taxpayer and the IRS are able to reach a resolution, the taxpayer and the IRS must both sign a consent form acknowledging acceptance of the mediated result. Taxpayers do not give up any of their rights by participating in this program and have the right to withdraw from the mediation program at any time. If there are issues that are not resolved through mediation, the taxpayer can engage the normal IRS appeal process to seek a resolution.

Full post as published by Michigan Business Lawyer Blog on December 07, 2007 (boomark / email).