The IRS's Alternative Dispute Resolution (ADR) process is a valuable tool that can help clients resolve disputes more quickly and efficiently than the standard appeals process. The ADR program offers several options for resolving tax controversies, including mediation, arbitration, and the Fast Track Settlement program.
In the mediation process, a neutral third party helps the taxpayer and the IRS reach a mutually acceptable resolution. The mediator does not make decisions but instead facilitates communication and negotiation between the parties. Mediation can be particularly useful in cases where there are factual or legal disagreements, or where the parties have difficulty communicating effectively.