IRS Extends Mediation Program.

Announcement 2001-9

[1] Summary: This document extends the test of the mediation procedure set forth in Announcement 98-99, 1998-2 C.B. 650, for an additional one-year period beginning on January 16, 2001, the date this Announcement is published in the Internal Revenue Bulletin.

[2] The mediation procedure allows taxpayers, in certain cases that are already in the Appeals administrative process and that are not docketed in any court, to request mediation of one or more issues as a dispute resolution technique. Under the procedure, the taxpayer and Appeals attempt to negotiate a settlement, assisted by an objective and neutral third party who has no authority to impose a decision.

[3] Background: Announcement 98-99, which contains the procedures that taxpayers may use to request mediation, applies to factual issues involving an adjustment of $1 million or more that are already in the Appeals administrative process. A two-year test of the mediation procedure concluded on November 15, 2000.

[4] As Appeals transitions to its modernized structure, it is considering proposals to expand its alternative dispute resolution (ADR) processes. After this review is completed, Appeals plans to promulgate guidance expanding the mediation program as provided for under section 7123(b)(1) of the Internal Revenue Code.

[5] Changes: To meet the goals of the Service's restructuring, Appeals has reorganized its staffing. Therefore, position and office titles in Announcement 98-99 are substituted as follows, along with an updated mailing address for Headquarters Appeals:

             Old                                 New

[7] Effective Date: This Announcement extends the test of the mediation procedure set forth in Announcement 98-99, for an additional one-year period beginning on January 16, 2001, the date this Announcement is published in the Internal Revenue Bulletin.

[8] Drafting Information: The author of this announcement is Sandy Cohen, Appeals LMSB Operations, Headquarters Appeals. For further information regarding this announcement, call Mr. Cohen at (202) 694-1818 (not a toll-free number).