05 Apr The 3 Types of Alternative Dispute Resolution Explained
There are always legal ways to resolve any problems you might have with the IRS, but settling problems in court or something similar might be problematic for several reasons. The dispute might sustain, there are court fees you must pay, you must hire a lawyer, and in the end, it might end up being all in vain as you can lose.
That’s why it’s always better to opt for one of the several alternative dispute resolution methods. You can still get help from a professional to see what will suit you best in the end – according to your specific problems and needs.
Whatever you choose to do, we wanted to explain the three main types of alternative dispute resolution (ADR) methods which are utilized by most people who have trouble with the IRS.
ADR Briefly Explained
Alternative dispute resolution methods have been in use by the IRS ever since the Administrative Dispute Resolution Act of 1990. From then on, the IRS has always been eager to use ADR to settle disputes.
What’s more, it’s not only in the IRS’s interest to settle disputes outside of court – it’s also in the benefit of you as well as the court. The alternative methods are useful mostly because they can be the easiest and the fastest way for everyone involved.
Despite all of that being the case, these methods are mostly unknown to the general public, even by many tax practitioners. However, this is not the case with Golden Tax Relief, as our sole job is to make your life with the IRS and tax problems easier. That’s why we wanted to give you an overview of which ADR methods you can use with the IRS. In the end, you have the freedom to choose whichever way you deem best.
Method 1 – Fast Track Mediation (FTM)
FTM can be used by both small businesses or regular taxpayers for dispute mediation. The IRS uses this technique in their effort to appear more friendly, and for once, they genuinely are.
This method is indeed fast – you can always finish everything within 40 business days, or less. Plus, whenever you use FTM, an Appeals officer is assigned to you or a team case leader who is trained in mediation techniques. This person is there to serve as the mediator between you and the IRS.
The method is usually used for many types of disputes that relate to general tax collection actions, audits, and offers in compromise.
Method 2 – Early Referral Program
The early referral program is best used for taxpayers under examination when they want to transfer a developed issue to appeals. That way you can have a more comfortable and faster time settling matters that are not already agreed upon – all before going to appeals.
Method 3 – Fast Track Settlement (FTS)
FTS is in several ways similar to FTM, which we explained as the first method. One of the few differences is that the technique can lead to a mediated settlement within 120 days at the most. Once again, an appeals team member is assigned to facilitate the negotiations.
In the end, it’s also worth mentioning that if you fail to reach an agreement in FTS, you can still go through the formal appeals process.
So there you have them, three simple ADR methods which are most commonly used by those seeking more natural alternative ways of working out their disputes with the IRS. If you want to know more, you can always contact us through our site or by calling us at 844 229 8936.