IRS Unleashes Program to Fast Track Tax Disputes

If you’re a small business owner or self employed and find yourself in the predicament of a tax dispute, you’re in luck. The IRS has unleashed a new program to fast track resolutions to tax disputes.

Handling Tax Disputes

The program comes after a few years of pilot testing, named Revenue Procedure 2017-25 (SB/SE FTS). It was set up to address the growing issue of tax disputes among small business owners and self employed individuals. The program allows these particular taxpayers that currently have factual disputes or legal issues under IRS investigation to work with a self employed/small business owner IRS team and the Office of Appeals to quickly resolve the issues.

This revenue procedure models after an existing program. It targets large companies with more than $10 million in assets. The goal is to save time and money by avoiding long litigation and formal appeals. Instead of months or years, disputes can be resolved in 60 days.

Rules and Exceptions

Both programs have some rules and exceptions, of course. They are not available to those under the jurisdiction of the Tax Exempt and Government Entities division. That has a separate fast track program. Further, if an IRS group manager becomes involved, the issues will remain unresolved.

As a small business owner or self employed individual, you must fulfill the ‘good faith’ requirement. If you have failed to respond to the IRS or fail to provide proper documentation, you are barred from the program. Also, you will lose eligibility if your issue finds its way to court or has “whipsaw” issues (pertaining to joint returns with issues between spouses). The IRS also reserves the power to conclude that the issue would not be resolved the best way via the fast track route.

Luckily for you, this means quicker tax resolutions. This fast track means the Edge Financial team can solve issues quicker, in a more streamlined fashion.

Now a few quick tips on resolving tax disputes via this route:

Always respond to IRS correspondence

As mentioned above, the IRS operates under a good faith schema. If you ignore or postpone response, you may not be able to participate in the program. On that note, be wary of expected correspondence not pertaining to your tax dispute, as scammers often fraud taxpayers by posing as the IRS, primarily over the phone.

Step #1: Respond to the IRS. Step #2: Call Edge Financial.

Organize documentation

Resolving a tax dispute undoubtedly will require a heap of documentation, and proper documentation at that. We hope you have receipts, correspondence, contracts, statements, and anything else relevant already organized in a folder. But make sure to do so as you prepare to work the IRS and party on the other end of the dispute. Save them electronically and divide them into folders for easy reference.

Tax Disputes: Preparing for Several Outcomes

The program aims to resolve tax disputes quickly and painlessly. But you should prepare for outcomes across the spectrum. The IRS will work with both parties for a mutually beneficial resolution. However, you may need to consult your tax professional to move forward in your best interest.