Stability Made Simple

IRS Expands Small Business Fast Track Settlement Program Nationwide

The Fast Track Settlement (FTS) program, which is jointly administered by the IRS Small Business/Self-Employed (SB/SE) Division and the IRS Office of Appeals, was expanded nationwide on November 6. The FTS program is a taxpayer-driven approach to settling audit issues that arise during the examination process using alternative dispute resolution techniques. It was designed with the goal of resolving issues within 60 days of acceptance of the required application in Appeals.

The process takes advantage of the mediation skills and settlement authority of the Office of Appeals. However, taxpayers choosing this option still have the right to appeal even if the FTS process is unsuccessful. The IRS created the program with the hope that disputes would be resolved while the examination was still open, thus avoiding subsequent costly appeals and possible litigation.

A taxpayer who is interested in participating in the SB/SE FTS, or who has questions about whether the program is suitable for his or her case, may contact the Examination or Specialty Program group manager assigned to the audit. To apply for the program, the taxpayer and the group manager need to submit Form 14017, Application for Fast Track Settlement, along with the taxpayer's concise response to the IRS’s position. The IRS has provided a short video to further clarify the process.