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IRS Tax Debt Mediation Will Now Take Less Time

Monday, December, 26, 2016

The lengthy process taxpayers were forced to endure when there was a dispute that involved the IRS will now be more efficient. The agency has created a Fast Track Mediation program, designed to resolve collection issues concerning outstanding tax debts more efficiently.

The Fast Track Mediation program replaces the IRS’s original Fast Track Mediation program with one that is specifically designed to deal with collections. Fast Track Mediation – Collection (FTMC) gives taxpayers an opportunity to resolve offer-in-compromise and trust fun recovery penalty issues and cases worked on by the IRS’s Collection fund faster. In the program, an Office of Appeals mediator will act as the neutral third-party mediator.

The Fast Track Mediation program in general has been tested since 2000. It allows taxpayers to quicken resolution of their cases by going through an Appeals mediator. That program will now be replaced by the FTMC program due to taxpayer requests being infrequent since its introduction. Most taxpayers opted instead for the Fast Track Settlement option, which is only available when cases are handled by the IRS Examination unit.

Instead of eliminating the original Fast Track Mediation program, the IRS decided to replace it, so taxpayers in Collection still have an early opportunity to resolve their cases promptly through mediation. Mediators in the program do not have settlement authority, and are there in a neutral capacity to ensure negotiations continue to move forward during the mediation process. Fast Track Mediation – Collection is limited to only offer-in-compromise and trust fund recovery penalty issues, and cases worked on by the IRS Collection unit.