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Fast Track Settlement - Tax Exempt/Government Entities

Fast Track Settlement for Tax Exempt and Government Entities taxpayers lets you resolve tax disputes with your auditor while your case is still under examination. Once your FTS application is accepted, the goal is resolution within 60 days.


With FTS, a trained mediator from the IRS Office of Appeals is assigned to help you and the IRS reach an agreement on the disputed issue(s). You retain full control over every decision you make during the FTS process. In addition to using mediation techniques to facilitate settlement discussions, the Appeals mediator may offer settlement proposals and use Appeals’ settlement authority, if both you and the IRS agree to it, to facilitate resolution in the dispute.


Read the General Mediation Information page if you want to learn more about how mediation works and the role of the Appeals mediator.


For your case to be considered for FTS, you must first try to resolve all issues with the IRS. This means working cooperatively with your auditor, followed by a conference with the auditor’s manager, before seeking the services of an Appeals mediator.

  • When considering FTS, consider what might happen if your case is not settled, Ask yourself:
  • Am I prepared for what could be lengthy appeal?

What is my risk that litigation would be unsuccessful, and what would the consequences be?


FTS does not eliminate or replace existing dispute resolution options, including your opportunity to request a hearing before Appeals or a conference with an IRS manager. If you cannot resolve your dispute through FTS, you still retain all otherwise applicable appeal rights.


If a resolution is reached through FTS, your overall IRS experience is substantially faster. The benefits of settlement over litigation include:

• Speed

• Cost

• Flexibility

• Control

• Reduced Risk

 

Certain cases and issues are not eligible for FTS:

  • Correspondence examination cases considered solely by an IRS Campus/Service Center site.
  • Issues that can be resolved through other established settlement initiatives, such as the Self Correction Program “SCP”, the Audit Closing Agreement Program “Audit CAP”, or other programs described in Revenue Procedure 2013-12.
  • Issues either designated for or under consideration for designation for litigation.
  • Other issues listed in Announcement 2012-34.

To apply for the FTS program, send your IRS auditor the following:

  1. Form 14017, Application for Fast Track Settlement, and
  2. A written statement detailing your position on the disputed issue(s).

Your IRS auditor will help you prepare the Form 14017 and provide you with copies of pertinent work papers so that you can prepare your written position on the disputed issue(s).


If you decide FTS is right for you AND your FTS application is approved, there are ways to prepare for a successful mediation.


Your IRS auditor is your best source for information about the FTS program. For more information on the TE/GE FTS program, refer to:

 

Page Last Reviewed or Updated: 05-Feb-2014