IRS Makes Fast Track Settlement Program Permanent for EO’s

The Internal Revenue Service announced on February 3, 2012 (at the annual TE/GE Councils Conference) that the Fast Track Settlement program, for exempt organizations, which commenced as a “test” in 2008, will continue as a permanent program. The Fast Track Settlement program for exempt organizations involves mediation and theoretically takes less time than the traditional Appeals process. An exempt organization can request to participate in the Fast Track Settlement program before the 30-day letter is issued by the Internal Revenue Service. Since the Fast Track Settlement program for exempt organizations began in 2008, the Internal Revenue Service estimates that about 40 cases have been reviewed. Of those, 37 cases were resolved, 2 were withdrawn and only 1 was not resolved.

Lauren and I have had some first-hand experience with a case that had the potential for entering the Fast Track Settlement program for exempt organizations, however, our experiences were not favorable in that the Internal Revenue Service dragged and dragged their feet in trying to determine whether we could be part of the Fast Track Settlement program. In the end, everything would have been resolved faster if we had gone the traditional Appeals route at the conclusion of the field agent’s work.