Unfortunately, it isn’t unusual to find yourself at odds with the IRS, however there are a number of ways to resolve your tax worries without ending up in court.
Five procedures to avoid litigation with the IRS
- Fast-track settlement. Allows taxpayers the opportunity to resolve audit issues during the examination process by using the mediation skills of the IRS Appeals Office and precedent case law
- Fast-track mediation. Again, the taxpayer and the IRS mediate the dispute through an IRS Appeals officer who acts as a neutral party. This type of mediation is designed to expedite the resolution of issues that arise during examination or collection actions
- Early referral. This process comes under the jurisdiction of both the examination and collection departments of the IRS and it allows the taxpayer the ability to transfer their case to the IRS Appeals Office. Only elements of the case can be transferred, therefore examination and collections personnel will continue to handle the issues that are not referred
- Post-appeals mediation. In this process, a neutral third party will be selected to mediate between the taxpayer and the IRS. The mediator will have no settlement authority and they do not make the decision, but they will help to facilitate negotiations between the disputing parties. This action can be taken after appeals settlement discussions have failed
- Arbitration. Similar to the above mediation process, an arbitrator will be selected to facilitate settlement, and all parties are bound to the arbitrator’s decision. Arbitration is only available for certain cases within the IRS Appeals Office’s jurisdiction which meet the requirements of the arbitration program
What If I Can’t Afford Legal Representation?
Another alternative for resolving tax issues without going to court is to use the services of the Taxpayer Advocate Service (TAS). This is an independent organization within the IRS that helps taxpayers resolve federal tax problems. You might be eligible for help from TAS if you’ve tried to resolve your tax problem through normal IRS channels and it still remains unresolved. You should also reach out to TAS if you believe that the IRS procedures aren’t working for your particular circumstance. TAS assists both organizations and individuals that are suffering financial difficulties because of their tax problems, and their services are free.
Low-Income Taxpayer Clinics (LITCs) also represent low-income taxpayers with IRS issues such as audits, appeals, and collection disputes. You might be able to receive free (or nominal charge) assistance from an LITC if you are a low-income taxpayer or if you speak English as a second language.
Remember, that no matter what your situation is you don’t have to be alone when handling an IRS dispute. Here, at the Scammahorn Law Firm, we have been protecting hardworking American taxpayers from threats and penalties issued by the IRS for years. If you have been targeted by the IRS and need advice, we welcome your call today at (903) 595-1000 to discuss your tax situation.