Tax Arbitration or Mediation

Settling IRS Tax Debt Through Tax Arbitration or Mediation

You can opt for binding arbitration for either a single factual issue or the entire decision. Appropriate cases for binding arbitration include valuations, reasonable compensation for taxes owed, and allocation of deduction and credit cases. Mediation, just like binding arbitration, must be selected by the tax payer. It must be requested within the parameters of the trial timeline and cannot be used as a means to delay the trial or other settlement procedures. Mediation is also a one-shot deal and cannot be used twice in the same case. IRS mediations are overseen by the tax court and guidance is offered to the mediator where necessary. In order to qualify for either of these methods, you cannot have already appeared in tax court.