When Form 14017, Application for Fast Track Settlement, is signed by the taxpayer, the case manager and the appropriate LB&I territory manager, the referring LB&I case manager will email Form 14017, Form 5701(s) and the written response to the unagreed issue from the taxpayer to the FTS mailbox at *AP ATCL FTS with a copy to LB&I FTS coordinator at *LB&I Fast Track.

The Appeals FTS program manager, in coordination with the LB&I FTS program manager, will screen the application to ensure the case is appropriate for FTS.

Acceptance or rejection of an FTS application will be based on a review of information submitted, discussions with the LB&I issue and case managers, and the recommendation of the assigned Appeals team manager (ATM).

The Appeals program manager will determine availability of the Appeals staffing resources before accepting the case.

If accepted, the LB&I case manager and the taxpayer will be contacted by the assigned appeals officer within ten days of receipt of the application.

Any case started without the concurrence of the Appeals Fast Track program manager and the LB&I issue and case territory managers will, at the discretion of either manager, be treated as a withdrawn case. If a case is not accepted into the FTS Program, the LB&I issue and case territory managers and Appeals FTS program managers will jointly notify the LB&I issue and case managers and the taxpayer within ten days of receipt of the application.

The FTS process is limited to 120 calendar days, unless the LB&I issue and case territory managers and the Appeals Fast Track program manager agree to an extension.

The LB&I team is fully involved in the Fast Track Settlement process as an equal participant.

LB&I participants will include the issue manager, the case manager and others with knowledge and expertise which may contribute to issue resolution.

The LB&I issue and case managers, in consultation with the appeals official, will determine the LB&I participants. In addition to the issue and case managers, participants will generally include the team coordinator and/or revenue agents who developed the issue(s). Depending on the issue(s), the case manager may also request the participation of specialists.

When issues are identified as potentially appropriate for FTS by the taxpayer or the examination team, the LB&I issue and case managers will discuss the issues and case with the taxpayer. Discussions should include the following:

The LB&I issue manager (in collaboration with the case manager) must discuss the case with the LB&I issue and case territory managers, the LB&I FTS program manager and/or the Appeals FTS program manager before initiating the Fast Track application process.

The LB&I case manager and the taxpayer will identify a preferred conference site, and Appeals will make every attempt to hold the Fast Track session conference at the preferred site, but may not be able to honor the taxpayer or LB&I request in every case.

Upon agreement to participate in the Fast Track Settlement process, the taxpayer and LB&I case manager will jointly complete and sign the Form 14017, Application for Fast Track Settlement.

When the Form 14017 is ready for submission and is signed by the appropriate LB&I territory manager, the referring LB&I case manager will email the application to the FTS mailbox at *AP ATCL FTS and email a copy to the LB&I FTS program coordinator at *LB&I Fast Track.

The Appeals Fast Track program manager will notify the ATM about the application, and the ATM will pre-assign an ATCL or AO to the case.

Since LB&I retains jurisdiction for the case and responsibility for the statute, the case manager will not forward the case file to Appeals.

In addition to the FTS application described above, the LB&I case manager (in collaboration with the issue manager) will include the following submissions via the FTS mailbox at *AP ATCL FTS, and to the LB&I FTS program coordinator at *LB&I Fast Track:

The LB&I Fast Track Settlement Application Issue Statement will contain a descriptive name of the issue being referred, the Uniform Issue List (UIL) number, dollar amounts by year, and a brief statement of the basis for the proposed adjustment and the taxpayer's basis for disagreement.

Agents can "close their case" for monitoring purposes while applying the FTS program to resolve unagreed issues. Agents can use the FTS program, even if doing so would cause a case to exceed its estimated completion date (ECD).

For FTS cases where all other examination issues are resolved except for one or more FTS issues, agents must use AIMS/ERCS Status Code 15 and Aging Reason Code 23. Cases with AIMS/ERCS Status Code 15 and Aging Reason Code 23 will be considered "closed" for monitoring purposes.

If all issues are resolved and the ECD is within the practice area’s recommendation, except for the FTS issue(s), then the ECD may be extended up to an additional 120 days on IMS to account for additional time necessary to complete FTS. Follow the practice area’s specific procedures for obtaining approval to extend the ECD.

Appeals functions in a mediation role to guide LB&I and the taxpayers to a mutually acceptable resolution.

Appeals plays an active role in the issue resolution process.

Appeals may advocate a resolution position but cannot impose such a position on either party.

Once an agreement is reached, Appeals will use its settlement authority to implement the agreed-upon resolution.

FTS cases are assigned to appeals officers, as listed below:

The Appeals FTS team may include Appeals Technical Specialists for ACI when appropriate.

Other appeals officers will be assigned to the team as needed, and at the discretion of the ATCL/ATM.

Appeals may use mediation-trained individuals from other divisions as co-mediators when their specific insight and technical knowledge of the issue being considered would make such participation beneficial to the resolution of the issue.

In most cases, the Appeals FTS program manager will alert the ATM that a Fast Track Settlement case is being sent to the local office. When time permits, the ATM and Appeals FTS program manager will pre-assign an appeals official to the case.

Within three business days of receipt, the ATM will review the application to determine if the FTS eligibility requirements are met. The ATM may involve an ATCL or other appeals official in the review.

If the ATM determines the case is eligible, the ATM must contact the Appeals FTS program manager to discuss acceptance of the case.

The ATM will indicate acceptance of the case by signing the application form. The Appeals FTS program manager and the LB&I issue and case territory managers will consider the ATM’s recommendation, and other factors, in deciding whether to accept the case for FTS.

If the ATM/ATCL does not recommend acceptance of the case, this will be communicated to the Appeals FTS program manager, who may assign the application to another ATCL for a second review.

Any case started without the approval of either the Appeals FTS program manager or the LB&I issue and case territory managers will, at the discretion of the respective managers, be treated as a withdrawn case.

Except with the concurrence of the LB&I issue and case territory managers and the Appeals FTS program managers, the FTS process is limited to 120 days. The start date for the 120-day Fast Track process is the date the appeals official accepts the FTS application.

Issues referred for FTS resolution must be fully developed. Requests for Technical Advice, Field Service Advice, etc. will not be made during the FTS process. Cases requiring further issue development are not ready for FTS, and the ATM will recommend rejection accordingly.

If the ATM determines that the case does not qualify for FTS (e.g. issues not fully developed, issues do not qualify, Appeals resources are not available, issues excluded), the ATM will discuss the rationale for the denial with the Appeals FTS program manager.

Appeals FTS program manager may concur with the recommended denial of the FTS request or may accept the case and identify necessary resources.

If the FTS request is recommended for rejection, the Appeals FTS program manager will discuss the rationale for rejection with the LB&I issue and case territory managers and the LB&I FTS program manager.

The program managers will discuss the rationale for the denial with the taxpayer and LB&I case and issue managers within ten business days of receipt of the application.

The Appeals FTS program manager will notify the LB&I case and issue managers of acceptance or denial of the FTS Application within ten (10) business days of Appeals receipt of the FTS application.

After the Form 14017, Application for Fast Track Settlement, is accepted by the LB&I issue and case territory managers and Appeals FTS program managers, the ATM will assign an appeals officer or an ATCL within seven business days of receipt of the application.

Appeals will normally accommodate the site jointly requested by the LB&I case manager and the taxpayer.

Where travel or personnel resource limitations impose restrictions on Appeals ability to accommodate the requested site, approval of the Appeals FTS program manager is required to use an alternative site.

The ATM and ATCL shall coordinate the need to use a team of appeals officers.

Where the case includes Appeals specialty issues, the appeals officer or ATCL will follow IRM requirements to refer the issues to the Appeals Director ATCL Operations or Appeals Director International Operations. Such referral shall be initiated by telephone and followed up with a formal written referral. The Appeals technical specialist may be assigned if warranted.

Request may be made to Appeals management for specific assignment of appeals officers with experience or technical expertise involving the issue.

Within ten business days after the case is assigned, the appeals official will call the taxpayer and LB&I case manager to start the Fast Track session planning process.

The appeals official may identify and discuss the need to limit the number of participants to the Fast Track session.

Fast Track cases are excluded from the Settlement Authority Panel Review because LB&I must agree to any disposition of the issues.

Where an issue is coordinated as an ACI issue, the Appeals team should follow the procedures in IRM 8.7.3.5.5, Review and Concurrence of Coordinated Issues in Fast Track Settlement Case.

To meet the two-pronged requirement that all decision makers are present at the Fast Track session and that ACI issues are subject to the review and concurrence of the Appeals technical specialist, the Appeals technical specialist will normally serve as a team member and will participate in the Fast Track session with the taxpayer and LB&I.

If the Appeals technical specialist is not part of the Fast Track Appeals team, settlement of the ACI issue remains subject to the review and concurrence of the Appeals technical specialist. This may be accomplished via telephone discussion.

If there is a disagreement between the Appeals technical specialist and the appeals officer on appropriate settlement terms for the issue, the resolution procedures in IRM 8.7.3.5, Review and Concurrence Procedures, will be followed.

The LB&I issue manager (in collaboration with the case manager) will:

Personnel selected by the issue and case managers to be part of the LB&I team will:

If LB&I Counsel representatives are part of the LB&I Fast Track team, their primary role will be to provide advice to LB&I as to legal interpretations and appropriateness of proposed settlements. At the discretion of the LB&I issue manager, Counsel may participate in the presentation of the LB&I position and technical arguments for the issues under consideration.

Appeals may use various methods and techniques to meet the needs and circumstances of each case.

The appeals official may ultimately make recommendations regarding the settlement of any or all issues (both factual and legal). If acceptable to all parties, the settlement proposal may be adopted.

Neither party is compelled to accept a settlement proposal made by the appeals official.

For an Appeals settlement proposal to be implemented, both LB&I and the taxpayer must agree. If the taxpayer and Appeals agree to a settlement proposal, but the LB&I issue and case managers reject the proposal, the issue and case manager’s position will be referred to the LB&I issue and case territory managers for review.

If the LB&I issue and case territory managers concurs with the proposed settlement rejection, the rejection must be expressed in writing by the territory manager. If an acceptable alternative settlement cannot be reached, the issue will be closed unagreed. If the issue and case territory managers does not concur in rejecting the Appeals settlement proposal, the proposal will be accepted by LB&I.

The prohibition on ex parte communications between appeals officers and other Internal Revenue Service employees provided by section 1001(a)(4) of the Internal Revenue Service Restructuring and Reform Act of 1998 does not apply to the communications arising in Fast Track Settlement, because the Appeals personnel are not acting in their traditional appeals settlement role. See Rev. Proc. 2012-18.

If the taxpayer or LB&I presents new information during the Fast Track session that the opposing party has not considered, Appeals will give the receiving party adequate time to evaluate the information/documentation.

Where consideration of substantial new information will unduly delay the Fast Track session, the case may be withdrawn from FTS by either Appeals, LB&I or the taxpayer. The case may be reconsidered for FTS after the issues are fully developed.

In situations where substantial new information is introduced during the FTS process, such new information may serve as a basis to raise a new issue or file a claim. The new information may be accepted into the FTS process subject to limitations discussed under IRM 4.51.4.6.3.4. However, such acceptance may only occur if it would not delay the FTS process beyond the planned 120 days, and if all parties concur in accepting the new information.

Experience proves that lapse time is doubled when new issues or claims are brought into Fast Track Settlement after starting the process. For this reason, new issues or claims will generally not be accepted as part of the FTS process.

The grounds for raising a new issue or claim must be substantial, and the potential effect on the tax liability must be material. New issues or claims should not be raised to trade against existing issues.

A taxpayer's claim requires LB&I examination action. However, such action need not be part of the FTS process.

New, unrelated claims or new issues should not be attached to an existing FTS process but should generally be considered in a separate process outside of FTS.

The parties will work to resolve the issues originally referred to Fast Track Settlement and the FTS process will not be suspended to allow examination of the new claims/issues.

If the taxpayer declines to bring the Fast Track process to a conclusion prior to consideration of such claims, the IRS will withdraw the case from FTS. The taxpayer may then request further FTS consideration.

Once a case comes to FTS, the taxpayer and IRS should expect all issues and claims have been raised, all relevant information has been disclosed, and the case is ready for resolution.

Addressing this challenge, and to prevent new issues from arriving late in the process, the appeals official shall confirm that all issues are listed on the Fast Track Session Report at the beginning of the process.

Form 14000, Fast Track Session Report, is an administrative document that assists all parties in planning the Fast Track session and reports the progress on the issues in dispute.

At the conclusion of the process, the Fast Track Session Report forms the basis for drafting closing agreements and the revenue agent report (RAR).

The Fast Track Session Report is used to identify the issues and reflect agreement from all parties as to the following:

In addition to documenting all contacts in the Appeals Centralized Data System (ACDS) activity record and conference notes, the appeals official will prepare the Fast Track Session Report (Session Report) at the start of the Fast Track Process, and update the Session Report timely as decisions are made.

The appeals official will:

Signing the Fast Track Session Report does not constitute a final settlement. The signature on the Fast Track Session Report carries no more force and effect than a memorandum of understanding between the parties.

The Fast Track Session Report is not a waiver of restrictions on assessment, nor does it terminate consents to extend the statute of limitation, nor does it start the running of any statute of limitations, i.e. - a one-year statute under IRC 6229(f) involving TEFRA proceedings.

The signature of an IRS official on the Fast Track Session Report does not create a promise against reopening the case.

The Fast Track Session Report Agreement shall be treated as final when it is signed, unless the specific conditions outlined below warrant altering the agreement.

Appeals commits to advocating the agreement reached in a signed Fast Track Session Report to reviewing authorities, such as the Joint Committee on Taxation.

If a request to reconsider the Fast Track Session Report agreement is submitted, the LB&I and Appeals FTS program managers must agree to reconsider the agreement. If the two parties cannot agree, the decision shall be elevated to the executive owners of the Fast Track Settlement process.

If after a reasonable time, it is apparent that no further benefit may be derived from the process, the LB&I issue and case managers and/or the appeals official should consider terminating the session.

If the appeals official decides to terminate the Fast Track session, concurrence of the Appeals FTS program manager is required.

If the LB&I issue and case managers decides to terminate the Fast Track session, the concurrence of the appropriate territory manager is required.

The party terminating the Fast Track session shall notify the other parties by a letter explaining the reason for termination and outlining the taxpayer's right to a traditional Appeals process.

If no issues have been resolved prior to withdrawal, no further reporting to the taxpayer or LB&I by Appeals will be required.

If some issues have been resolved at the time of withdrawal, standard FTS process closing procedures will be followed regarding the resolved issues.

The taxpayer will retain all standard Appeals rights regarding any unresolved issues remaining at the time of withdrawal.

The taxpayer may withdraw from the FTS process at any time by notifying the LB&I case manager and the Appeals representative in writing.

For any issue(s) that remain unresolved, taxpayers will retain all standard Appeals rights.

LB&I will close the case as "unagreed" or "partially agreed" as appropriate and forward the case to Appeals upon receipt of an acceptable protest along with the taxpayer’s request for an Appeals hearing.

The taxpayer should be advised that the case will be closed through the standard LB&I closing process.

Appeals has settlement authority under IRM 1.2.2.9.3, Delegation Order 8-3 (formerly Delegation Order 97, Rev. 34), Closing Agreements Concerning Internal Revenue Tax Liability. Also see Delegation Order 8-9, Authority of Appeals to Administer Alternative Dispute Resolution Procedures.

An appeals official, such as an ATCL, Appeals team manager, or an appeals officer (no lower than a Grade 14), uses delegated settlement authority to approve and enter into any FTS Agreement that involves hazards of litigation by using a Specific Matters Closing Agreement (Form 906) or a waiver Form 870-AD.

Appeals makes its evaluation of the hazards on Fast Track issues. LB&I should only commit to a settlement that is within their authority to resolve issues prior to referral to Fast Track settlement.

Potential settlement positions that may have been discussed with the taxpayer before an FTS referral may be presented to the appeals official for consideration during the Fast Track session. However, Appeals will conduct an independent evaluation of the hazards of litigation and will not execute a settlement that does not fall within such hazard’s evaluation or established settlement guidelines for the issue.

If the appeals official does not accept a settlement proposed between the taxpayer and LB&I, the official will fully explain why it cannot be accepted to both parties.

If a Joint Committee report is required for the case, Appeals will delay execution of the closing agreement until LB&I completes the Joint Committee procedures. Where Appeals settlement authority has been used on a Joint Committee case, the appeals official involved in the settlement will be available to respond to inquiries from the Joint Committee regarding the settlement.

When an agreement is reached, a Fast Track Session Report will be completed by Appeals, reflecting the agreement, and all parties will sign the report.

If the issue requires a closing agreement, or if the parties request a closing agreement, and Appeals settlement authority was used, Appeals will prepare Form 906, Closing Agreement on Final Determination Covering Specific Matters or Form 866, Agreement as to Final Determination of Tax Liability based on the signed Fast Track Session Report.

When closing agreements are used, the taxpayer will sign the agreement, and Appeals will execute it on behalf of the government. In cases involving Joint Committee (JC) review, Appeals will close its FTS work unit without signing the closing agreement and provide instructions for LB&I to return the closing agreement to Appeals for execution after the JC review process is complete.

After the FTS process is complete, Appeals will provide the LB&I team with the following:

A brief Appeals Case Memorandum (ACM) is prepared for issues settled using Appeals settlement authority.

After the FTS process is complete, LB&I will proceed to complete actions on the overall case. Resolved issues will be incorporated into the RAR, and LB&I will proceed to complete actions on the overall case, as indicated in IRM 4.51.4.8.

The Appeals FTS participants will complete and submit internal Appeals reporting requirements in accordance with IRM 8.1, Appeals Function.

The Appeals FTS program manager will provide a report on the FTS case results to the LB&I issue and case territory managers. The report will consist of Form 5402, ACM for settled issues, a completed FTS Session Report, and a copy of the agreement form.

If the Fast Track Settlement process is unsuccessful in resolving/settling an issue, Appeals will send a letter to the taxpayer and LB&I. The letter will state who participated in the process, list the issue(s) that were not resolved, and explain the taxpayer's rights to appeal. This would be done in the case of withdrawn issues as well.

The administrative file consisting of Form 5701 with the taxpayer's written response, FTS workpaper and Form 5402 will be provided to LB&I for inclusion in the case file. No ACM will be prepared for unresolved issues.

After the FTS process, LB&I will proceed to complete actions on the overall case, as indicated at IRM 4.51.4.8.

The Appeals FTS participants will complete and submit internal Appeals reporting requirements in accordance with IRM 8.6, Conference and Settlement Practices.

A report on the FTS case results will be provided to the LB&I program manager by the Appeals program manager.