IRS has released Publication 4539, which provides taxpayers with an overview of the Fast Track Settlement (FTS) process. The pub includes information on who may use FTS, benefits to its use, and how a taxpayer can start the FTS process. Corporate taxpayers under examination by IRS’s Large Business and International Division (LB&I) can get an expedited resolution of their case, while it continues to be within LB&I’s jurisdiction by taking part in IRS’s FTS program.
The FTS program, which is jointly administered by LB&I and IRS’s Office of Appeals, provides LB&I personnel and taxpayers an opportunity to mediate their disputes with an Appeals Official performing as a neutral party. According to IRS, the use of FTS provides taxpayers with a way to solve audit issues through the exam process in 120 times or less.
FTS is a key part of IRS’s effort to reduce the quantity of time that the evaluation and resolution procedures take. According to IRS Commissioner Douglas Shulman, 83% of instances accepted into FTS resulted in a resolution. FTS is normally available for all cases within LB&I’s Compliance jurisdiction and certain situations outside of LB&I’s jurisdiction.
According to IRS, it works best with a limited amount of unagreed issues. FTS may also be found in conjunction with LB&I’s Compliance Assurance Process (CAP), that allows participating large corporations to work collaboratively with an IRS team to recognize and resolve potential tax issues before the tax return is filed every year. Preventing the accrual of “hot” interest (i.e., the … Read more