26 USC 7123 - Appeals dispute resolution procedures

U.S Code last checked for updates: Jan 30, 2025

§ 7123.

Appeals dispute resolution procedures

(a)

Early referral to appeals procedures

(b)

Alternative dispute resolution procedures

(1)

Mediation

The Secretary shall prescribe procedures under which a taxpayer or the Internal Revenue Service Independent Office of Appeals may request non-binding mediation on any issue unresolved at the conclusion of—

(A)

appeals procedures; or

(B)

unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.

(2)

Arbitration

The Secretary shall establish a pilot program under which a taxpayer and the Internal Revenue Service Independent Office of Appeals may jointly request binding arbitration on any issue unresolved at the conclusion of—

(A)

appeals procedures; or

(B)

unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.

(c)

Administrative appeal relating to adverse determination of tax-exempt status of certain organizations

(1)

In general

(2)

Adverse determinations

For purposes of paragraph (1), an adverse determination is described in this paragraph if such determination is adverse to an organization with respect to—

(A)

the initial qualification or continuing qualification of the organization as exempt from tax under section 501(a) or as an organization described in section 170(c)(2),

(B)

the initial classification or continuing classification of the organization as a private foundation under section 509(a), or

(C)

the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).

(Added Pub. L. 105–206, title III, § 3465(a)(1), July 22, 1998, 112 Stat. 768; amended Pub. L. 114–113, div. Q, title IV, § 404(a), Dec. 18, 2015, 129 Stat. 3118; Pub. L. 116–25, title I, § 1001(b)(1)(G), July 1, 2019, 133 Stat. 985.)

cite as: 26 USC 7123