Title 26 — Internal Revenue Code
Chapter 74 — Closing Agreements and Compromises
§ 7123. Appeals dispute resolution procedures
Statutory text
Early referral to appeals procedures
The Secretary shall prescribe procedures by which any taxpayer may request early referral of 1 or more unresolved issues from the examination or collection division to the Internal Revenue Service Independent Office of Appeals.
Alternative dispute resolution procedures
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—
appeals procedures; or
unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
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—
appeals procedures; or
unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
Administrative appeal relating to adverse determination of tax-exempt status of certain organizations
In general
The Secretary shall prescribe procedures under which an organization which claims to be described in section 501(c) may request an administrative appeal (including a conference relating to such appeal if requested by the organization) to the Internal Revenue Service Independent Office of Appeals of an adverse determination described in paragraph (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—
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),
the initial classification or continuing classification of the organization as a private foundation under section 509(a), or
the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Taxpayer Bill of Rights 3
Pub. L. 105–206 title III § 3465(a)(1) · 112 Stat. 685
Enacted · 26 U.S.C. § 7123
Added Pub. L. 105–206, title III, § 3465(a)(1), July 22, 1998, 112 Stat. 768
Source evidence
Code source credit
Added Pub. L. 105–206, title III, § 3465(a)(1), July 22, 1998, 112 Stat. 768Enacted provision · exact public law section
(1) In general.— Chapter 74 (relating to closing agreements and compromises) is amended by redesignating section 7123 as section 7124 and by inserting after section 7122 the following new section: “SEC. 7123. APPEALS DISPUTE RESOLUTION PROCEDURES. “(a) Early Referral to Appeals Procedures.— The Secretary shall prescribe procedures by which any taxpayer may request early referral of 1 or more unresolved issues from the examination or collection division to the Internal Revenue Service Office of Appeals. “(b) Alternative Dispute Resolution Procedures.— “(1) Mediation.— The Secretary shall prescribe procedures under which a taxpayer or the Internal Revenue Service 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 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.”.Department of the Interior, Environment, and Related Agencies Appropriations Act, 2016
Pub. L. 114–113 div. Q title IV § 404(a) · 129 Stat. 2242
Added · 26 U.S.C. § 7123(c)
Pub. L. 114–113 added subsec. (c)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 114–113 added subsec. (c).Enacted provision · exact public law section
(a) Limitation of Funds.— None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to accept or process applications for a patent for any mining or mill site claim located under the general mining laws.Effective date note
Pub. L. 114–113, div. Q, title IV, § 404(b), Dec. 18, 2015, 129 Stat. 3118, provided that: “The amendment made by subsection (a) [amending this section] shall apply to determinations made on or after May 19, 2014.”Taxpayer First Act
Pub. L. 116–25 title I § 1001(b)(1)(G) · 133 Stat. 981
Substituted · 26 U.S.C. § 7123
Pub. L. 116–25 substituted “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals” wherever appearing
Source evidence
Code amendment note
Pub. L. 116–25 substituted “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals” wherever appearing.Enacted provision · exact public law section
(G) Subsections (a), (b)(1), (b)(2), and (c)(1) of section 7123.
3 of 3 references resolved to an enrolled provision
Editorial Notes
Prior Provisions
A prior section 7123 was renumbered section 7124 of this title.
Amendments2015–2019 · 2 rounds
2019
Pub. L. 116–25 substituted “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals” wherever appearing.
2015
Subsec. (c). Pub. L. 114–113 added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Pub. L. 114–113, div. Q, title IV, § 404(b), , 129 Stat. 3118, provided that: “The amendment made by subsection (a) [amending this section] shall apply to determinations made on or after .”
Credits
1998–2019 · 3 acts
- 1998Added Pub. L. 105–206, title III, § 3465(a)(1), , 112 Stat. 768
- 2015amended Pub. L. 114–113, div. Q, title IV, § 404(a), , 129 Stat. 3118
- 2019Pub. L. 116–25, title I, § 1001(b)(1)(G), , 133 Stat. 985.
Show as published
(Added Pub. L. 105–206, title III, § 3465(a)(1), , 112 Stat. 768; amended Pub. L. 114–113, div. Q, title IV, § 404(a), , 129 Stat. 3118; Pub. L. 116–25, title I, § 1001(b)(1)(G), , 133 Stat. 985.)