Exempt Organizations Advisory - IRS Extends Fast-Track Settlement Program to Tax-Exempt Organizations

Catherine W. Wilkinson (cwilkinson@steptoe.com)
Suzanne Ross McDowell (smcdowell@steptoe.com)

Today the IRS announced that it is extending the fast-track settlement (FTS) program to the Tax-Exempt and Governmental Entities Division (TE/GE).   [See Announcement 2008-105, 2008-48 IRB 1219 (pages 1219 – 1224).]  FTS will enable entities with issues under examination by the TE/GE to work together with TE/GE and the Office of Appeals to expedite resolution of outstanding disputed factual and legal issues.  FTS may be initiated at any time after an issue has been fully developed, but before the issuance of a 30-day letter or its equivalent. 

FTS procedures for tax-exempt and government entities are nearly identical to those described in Revenue Procedure 2003-40 for large and midsize businesses and in Announcement 2006-61 for small businesses and self-employed individuals. 

FTS is available for cases in which the issues are fully developed, the taxpayer has stated a position in writing, and there are a limited number of disputed issues.  The program will be available for a two year pilot period beginning December 1.