This article was published by the IRS.

Mediation – also known as alternative dispute resolution – can help taxpayers resolve tax issues early and efficiently.

The process provides taxpayers a faster, more collaborative and cost-effective approach to case resolution. The traditional appeal process is still available for taxpayers who choose it.

Mediation might be right for a taxpayer if:

* The taxpayer wants to resolve the dispute at the earliest possible stage of their audit.

* The taxpayer doesn’t have many disputed issues.

* The taxpayer gave the IRS information to support their position.

* The IRS is still considering the taxpayer’s case and issues remain unresolved.

Mediation is:

* Voluntary for both parties.

* Nonbinding, meaning each party retains 100% control over whether to settle the case. No one can force either party to do something they don’t agree to do.

* Effective when both parties have a desire to resolve the disputed issue.

* Appropriate when all issues are fully resolved except the issue for which mediation is requested.

* A chance to avoid a lengthy appeal process or costly litigation.

Mediation is not:

* Required by either party.

* A replacement for the audit or collection process.

* A process in which the parties in the dispute offer arguments directly to the mediator hoping to “win.”

* Effective if either party believes the only way the dispute will get resolved is if the other party concedes or gives up on its position.

* A time to present new information or raise new issues.

* An opportunity to try and get a more favorable outcome or delay the examination or collection process.

Mediation works best if taxpayers prepare for success. Find out what to expect from the Independent Office of Appeals.