IRS Publication 4167 – IRS Forms, Instructions, Pubs 2026 – If you disagree with an IRS audit, collection action, or proposed tax adjustment, you don’t always have to go through a lengthy traditional appeal or head straight to court. IRS Publication 4167 (Rev. 4-2021) — officially titled Introduction to Alternative Dispute Resolution — serves as the official IRS guide to faster, collaborative ways to resolve tax disputes.
This free 12-page brochure (still the current version as of 2026 and actively linked on IRS.gov) explains five key Alternative Dispute Resolution (ADR) programs offered by the IRS Independent Office of Appeals. These options help taxpayers and the IRS reach fair settlements without litigation.
In this SEO-optimized guide, you’ll learn exactly what IRS Publication 4167 covers, how each ADR program works, who qualifies, the benefits, recent 2025 pilot enhancements, and how to request these options. Download the full PDF here: https://www.irs.gov/pub/irs-pdf/p4167.pdf.
What Is Alternative Dispute Resolution (ADR) According to the IRS?
The IRS defines ADR as voluntary, non-binding methods that resolve federal tax controversies fairly and impartially — without going to court. The Appeals mission statement in Publication 4167 emphasizes resolving disputes “on a basis which is fair and impartial to both the Government and the taxpayer” while promoting voluntary compliance and public confidence in the tax system.
Unlike traditional appeals, ADR programs use trained Appeals mediators or facilitators who help both sides communicate, clarify issues, and negotiate settlements. You keep full control — no one forces an outcome — and you retain all normal appeal rights if ADR doesn’t resolve everything.
Key advantage: Many programs resolve cases in weeks or months instead of years, often at lower cost and with less stress.
The 5 ADR Programs Detailed in IRS Publication 4167
Publication 4167 breaks down each program clearly with eligibility, processes, and forms. Here’s a current overview:
1. Fast Track Mediation – Collection (FTMC)
Best for: Collection disputes involving certain Offers in Compromise (OIC) or Trust Fund Recovery Penalties (TFRP).
- A neutral Appeals mediator helps you and an IRS Collection representative discuss issues and reach a joint solution.
- Goal: Resolution within 40 days.
- You don’t need a formal protest; provide a written position and both parties sign Form 13369, Agreement to Mediate.
- Mediator has no settlement authority — it’s purely facilitative.
2. Fast Track Settlement (FTS)
Best for: Examination disputes before a 30-Day Letter is issued (while still in Exam jurisdiction).
- A specially trained Appeals employee facilitates discussions between you, the examiner, and the group manager.
- Uses “hazards of litigation” analysis for realistic settlements.
- Typical timelines: 120 days (LB&I cases) or 60 days (SB/SE and TE/GE).
- Apply with one-page Form 14017, Application for Fast Track Settlement after responding in writing to proposed adjustments (Form 5701).
2025 Pilot Updates (effective Jan. 15, 2025 – Jan. 15, 2027): FTS now applies to one or more issues even if others are ineligible; denials require first-line executive approval with explanation; no pre-FTS managerial conference required for SB/SE and TE/GE in most cases. A new “Last Chance FTS” pilot gives SB/SE taxpayers one final shot after a 30-day letter.
3. Post-Appeals Mediation (PAM)
Best for: 1–few remaining factual or legal issues after standard Appeals settlement discussions fail.
- An impartial Appeals mediator facilitates a fresh negotiation (no dollar limits).
- Available for valuation, transfer pricing, coordinated issues, and even after failed closing agreements.
- Request in writing to your Appeals Team Manager.
2025 Pilot Updates (launched Oct. 1, 2025, two-year program): PAM cases are reassigned to a completely new Appeals team with no prior involvement for an “expedited fresh look.” This change makes the program far more attractive to taxpayers.
4. Rapid Appeals Process (RAP)
Best for: Eligible LB&I (non-IIC), SB/SE Estate & Gift cases.
- Turns the initial Appeals pre-conference into a single mediated working conference.
- Uses mediation techniques to resolve the entire case (or most issues) in one session.
- If unsuccessful, reverts to traditional Appeals.
5. Early Referral (ER)
Best for: Developed but unagreed single issues while the rest of the case continues in Exam or Collection.
- Transfers a key issue to Appeals early, often speeding overall resolution.
- Available for examination or collection cases, including certain accounting method changes.
Major Benefits of Using ADR (Per IRS Publication 4167 & Recent Data)
- Speed: Many cases close in 40–120 days vs. years in traditional appeals or Tax Court.
- Cost savings: Less attorney time, no “hot interest” in some programs, single tax computation.
- Collaborative & confidential: Focuses on mutual resolution rather than adversarial positions.
- High success rates: PAM and other programs historically succeed at high levels; overall ADR usage rose 25% in 2024, with PAM up 110%.
- Retain rights: Unresolved issues keep full appeal and litigation options.
- No risk: Voluntary and non-binding.
Who Can Use These Programs & Key Limitations?
Eligible: Individual taxpayers, businesses, estates, and their authorized representatives (power of attorney required if not self-representing).
Common exclusions (detailed in Pub 4167):
- Frivolous positions
- Whipsaw issues
- Cases inconsistent with sound tax administration
- Previously mediated issues in some cases
- Docketed Tax Court cases (most programs)
Always check current eligibility with your assigned IRS contact or the ADR Program Management Office.
How to Request ADR – Step-by-Step?
- Review IRS Publication 4167 (download link above).
- Discuss with your IRS examiner, collection officer, or Appeals officer.
- Submit the appropriate form or written request (e.g., Form 14017 for FTS, Form 13369 for FTMC).
- For PAM or general questions: Contact your Appeals Team Manager or email [email protected] (new ADR PMO contact).
- Prepare thoroughly — bring all documentation and decision-makers.
Recent Developments (2024–2025) – Why ADR Is More Attractive Than Ever?
The IRS created a dedicated Alternative Dispute Resolution Program Management Office in 2024 to expand and improve these programs. The 2025 pilots (Announcement 2025-6) and PAM reassignment process reflect strong momentum and taxpayer feedback.
IRS Tax Tip 2025-34 (May 30, 2025) and multiple announcements reinforce that mediation is now a top priority for faster, fairer resolutions.
Frequently Asked Questions About IRS Publication 4167 & ADR
- Is Publication 4167 still current?
Yes — Rev. 4-2021 remains the authoritative introductory brochure and is actively promoted on IRS.gov in 2025–2026. - Can I use ADR if I already filed a protest or appealed?
Yes — PAM and RAP are specifically for post-Appeals or early Appeals stages. - Do I need a tax attorney?
Not required, but highly recommended for complex cases. You can represent yourself or bring anyone. - Is there any cost?
No — Appeals mediators/facilitators are provided at no charge. - What if ADR fails?
You simply continue with traditional Appeals or litigation rights intact.
Final Thoughts: Should You Use IRS ADR?
For most taxpayers facing disputes, the answer is yes — especially with the expanded 2025 pilots making programs more accessible and taxpayer-friendly. IRS Publication 4167 remains the best starting point to understand your options and decide which path fits your situation.
Next steps:
- Download IRS Publication 4167 today.
- Visit the official Appeals Mediation Programs page: irs.gov/appeals/appeals-mediation-programs.
- Contact your assigned IRS representative or the ADR PMO for case-specific guidance.
- Consider consulting a tax professional experienced in IRS Appeals.
Resolving tax disputes doesn’t have to be slow or expensive. Alternative Dispute Resolution through the programs in Publication 4167 offers a smarter, faster path — and recent IRS initiatives are making it even better.
This article is for informational purposes only and is not tax or legal advice. Always verify the latest guidance on IRS.gov, as programs and procedures can evolve.