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IRS Launches New Programs To Improve Tax Dispute Resolution

The IRS has launched three pilot programs to enhance its Alternative Dispute Resolution (ADR) processes that focus on making them faster, more flexible, and accessible to taxpayers. This initiative is part of the agency’s broader effort to transform its operations and better align with its Strategic Operating Plan.

What’s Changing in ADR?

ADR programs like Fast Track Settlement (FTS) and Post-Appeals Mediation (PAM) are designed to resolve disputes earlier in the administrative process, which avoids litigation. The pilot programs announced aim to:

  • Expand Eligibility: Taxpayers can now use FTS for individual issues within a case, even if other issues are ineligible, which provides greater flexibility.
  • Increase Oversight: Decisions to deny FTS or PAM requests must be approved by a first-line executive to ensure consistency and thoughtful review.
  • Enhance Transparency: Taxpayers will receive clear explanations for any denied ADR requests, to gain greater trust in the process.

Why It Matters

ADR has long been a cost-effective and collaborative way to resolve disputes, but its functionality and accessibility needed improvements. By addressing these gaps, the IRS hopes to attract more taxpayers to these programs, which reduces the burden on both the agency and taxpayers.

Future Improvements

The IRS is working on further enhancements to ADR, informed by input from the Government Accountability Office, the Taxpayer Advocate Service, and other stakeholders. While ADR options expand, the traditional appeals process remains available for those who prefer it.

Dallo Law Group Can Help

Dealing with tax disputes can be stressful, but Dallo Law Group is here to help you understand your options and find the best solutions. With the IRS making changes to its dispute resolution programs, having knowledgeable support can make a difference. Contact us today to see how we can assist you in resolving your tax issues quickly and effectively!

Contact: 619-912-0616