The Rapid Appeals Process (RAP)

RAP combines the separate Appeals preconference and opening conference with IRS Examination and the taxpayer into one working conference. RAP uses mediation techniques to keep everyone focused on the disputed issues and help the IRS and the taxpayer collaborate toward a resolution. We will explain each side’s litigation risks for each issue and then focus on a settlement that takes those risks into account.

RAP conference

Here are the general guidelines for the RAP conference:

• Everyone must come prepared to resolve the issues on the day of the session. 
• Both sides should already have explained their positions during the audit and in the notice of proposed adjustment, protest, and rebuttal. 
• In general, no one should present new information at the RAP conference so we can focus right away on resolving the issues. 
• If you present new information, such as documents or legal arguments, during the Appeals conference: 
  • We will send it to IRS Examination for review and comment. 
    • IRS Examination may use the new information to change its determination. 
    • Depending on the new information, the RAP may end or continue. 

Joint session

• The RAP conference will begin as a joint session. 
• Each side will explain its position on each issue. 
• Both sides will then discuss the issues with Appeals present to help guide the discussion. 
• Both sides may bring legal or subject matter experts to the session. 
• Everyone must come with an open mind and be willing to work toward resolving the issues. 
• RAP works best when both sides are open about the strengths and weaknesses of their positions. 
• After the joint session, we may meet separately with each side to discuss the issues and explore settlement options.

Separate sessions

• RAP discussions are for settlement purposes only. 
• They apply only to the tax years currently in Appeals. 
• They do not bind any other audit cycle. 
• If you share settlement options during a separate session: 
  • We will keep that information confidential. 
    • We will not share it with the other side unless you give permission. 
• If you raise new facts or new arguments during a separate session: 
  • They are not confidential. 
    • We may share them with the other side so it can respond. 

Ex parte communication rules

• Without a signed waiver, Appeals officers cannot have ex parte communications with other IRS employees during RAP because Appeals is acting in its normal settlement role. 
• Before any separate session, Appeals will ask you to sign Form 14525, Waiver of Restrictions on Ex Parte Communications in Rapid Appeals Process. 
• The waiver applies only to RAP and only for its stated purposes and terms. 
• When RAP ends, the ex parte communication restriction will apply to any further activity on the appeal. 
• If you do not want to sign Form 14525 before RAP: 
  • Appeals will hold RAP as a joint session. 
    • Appeals may meet separately with you. 
    • Appeals may not meet separately with the IRS Examination team. 

Decision maker

• Your decision maker should attend the conference. 
• That person must have authority to accept a proposed settlement. 
• Unless either party withdraws, we will continue the joint sessions, or separate sessions if we use them, as long as you, Appeals, and IRS Examination keep discussing the issues and evaluating their strengths and weaknesses. 
• For RAP to work, both sides must negotiate in good faith and honestly evaluate their litigation risks. 

When RAP ends

RAP will continue until one of these happens:

• Both sides fall within Appeals’ settlement range 
  • This means your evaluation and IRS Examination’s evaluation of litigation risks fall within the settlement range that Appeals determines. 
    • If that happens, Appeals will explain the tentative settlement to both sides, subject to Joint Committee review if needed. 
    • The RAP conference will then end. 
    • We will prepare settlement documents for both sides to sign at the end of the conference or later, depending on the issue. 
• Your position falls within Appeals’ settlement range, but IRS Examination’s does not 
  • If your evaluation of litigation risks falls within Appeals’ settlement range, but IRS Examination’s evaluation does not, the Appeals team will immediately explain to IRS Examination why Appeals supports the tentative settlement. 

Traditional appeal rights and new information

• If either party withdraws, or if Appeals decides RAP is not helping resolve the disputed issues quickly, we will end RAP. 
• The appeal will then continue under the traditional appeal process with the same Appeals team. 
• Ending RAP does not give either party the right to ask for a new Appeals team. 
• If you raise new arguments or provide new information later in the Appeals process, we will give IRS Examination a chance to respond.