IRS Publication 5022 – Small business owners and self-employed taxpayers facing IRS audits often worry about long delays, mounting interest, and expensive appeals. IRS Publication 5022 explains Fast Track Settlement (FTS), a voluntary mediation program that resolves disputed tax issues during the examination process—often in as little as 60 days.
This SEO-optimized guide covers everything in Publication 5022 (Rev. 9-2021), which remains the authoritative IRS resource for SB/SE Fast Track Settlement as confirmed on IRS.gov/appeals/fast-track (updated April 2025). Learn eligibility, the step-by-step process, benefits, exclusions, and how to apply using Form 14017.
What Is IRS Publication 5022?
Publication 5022, titled Fast Track Settlement – A Process for Prompt Resolution of Small Business Self Employed Tax Issues, is the official IRS guide for the Small Business/Self-Employed (SB/SE) Fast Track Settlement program.
Published in September 2021 (Catalog Number 59583Y), it details how taxpayers under SB/SE jurisdiction can resolve audit disputes quickly with help from the IRS Independent Office of Appeals. The program leverages Appeals’ mediation skills and settlement authority while the case stays with the examiner.
FTS aims to shorten the combined examination + appeals timeline by at least one year compared to traditional processes.
What Is Fast Track Settlement (FTS)?
Fast Track Settlement is a voluntary, confidential mediation between the taxpayer and SB/SE examiner, facilitated by a neutral Appeals official.
The Appeals official helps the parties reach a mutually acceptable resolution on fully developed issues, including consideration of the “hazards of litigation” (the realistic chance a court would rule differently).
Key features:
- Completed within 60 days of acceptance into Appeals.
- No formal protest required.
- One-page application (Form 14017).
- Retains all traditional appeal rights if unsuccessful.
Unlike traditional Appeals, the examiner participates, and the process occurs during the audit rather than after it ends.
Who Is Eligible for Fast Track Settlement?
FTS is available to most small businesses, self-employed individuals, and other taxpayers under SB/SE examination with no dollar-amount limit.
Eligibility requirements (per Publication 5022):
- Issues must be fully developed.
- Taxpayer must submit a brief, concise written response to the IRS position.
- Limited number of issues that can realistically be resolved in 60 days.
- All facts, claims, and documentation presented before applying.
- Initiated after a group manager conference but preferably before a 30-day letter (and always before a 90-day letter).
Both the taxpayer and examiner must agree to participate.
Issues and Cases NOT Eligible for FTS
Publication 5022 explicitly excludes:
- Collection Appeals Program, Collection Due Process, Offer-in-Compromise, or Trust Fund Recovery Penalty cases.
- Campus correspondence examinations.
- Cases with lack of good faith or unreasonable delays.
- Court-docketed cases.
- Issues designated for litigation, under Competent Authority, “whipsaw” issues, or barred by res judicata/prior agreements.
- TEFRA partnership cases.
- Any issue inconsistent with sound tax administration.
If even one issue in the case is ineligible, the entire case is typically ineligible under the 2021 guidance (note: some 2025 LB&I updates allow issue-by-issue processing, but SB/SE follows Pub 5022 rules).
Major Benefits of Using Fast Track Settlement
Taxpayers and the IRS both gain from FTS:
- Speed — Resolve in ~60 days vs. 1+ years for full Appeals.
- Cost savings — Less professional fees and reduced interest/penalties.
- Hazards of litigation considered — Appeals can propose settlements based on litigation risk.
- No formal protest needed — Simpler than traditional appeals.
- Confidential — Protected communications.
- Withdraw anytime — With written notice; full appeal rights preserved.
- Retain all rights — Unresolved issues go to regular Appeals (Publication 5).
Many cases close entirely once key issues are settled in FTS.
Step-by-Step: How the Fast Track Settlement Process Works?
- Issue Identification & Development — Examiner raises issues; taxpayer provides documentation and written position.
- Managerial Conference — Examiner and group manager discuss with taxpayer; all agree on facts.
- Joint Application — Taxpayer and examiner complete Form 14017 (Application for Fast Track Settlement). Include examiner workpapers and taxpayer response.
- Submission & Review — Examiner routes through group manager to local Appeals Team Manager. Appeals reviews for completeness and suitability.
- Acceptance — If accepted, case assigned to FTS Appeals Official. Session scheduled promptly.
- Mediation Session — Neutral Appeals official facilitates discussion. All decision-makers attend. Appeals may propose settlement terms.
- Agreement — If reached, sign Form 14000 (Fast Track Session Report). Prepare closing documents (e.g., Form 906 Closing Agreement if needed). Case closes with SB/SE.
- No Agreement — Withdraw or proceed to traditional Appeals rights.
The entire FTS phase targets 60 days from acceptance.
How to Apply for Fast Track Settlement?
- Discuss FTS with your SB/SE examiner.
- Jointly complete Form 14017 (download from IRS.gov).
- Attach required documents.
- Examiner submits package to SB/SE group manager → Appeals.
Representation via Form 2848 (Power of Attorney) is allowed.
Download Publication 5022 PDF directly: https://www.irs.gov/pub/irs-pdf/p5022.pdf
See also Revenue Procedure 2017-25 for program details.
What Happens If No Agreement Is Reached?
You retain full appeal rights under Publication 5. File a formal protest after the 30-day letter.
Note: Post-Appeals Mediation is not available for issues considered in FTS.
Fast Track Settlement vs. Traditional Appeals
| Aspect | Fast Track Settlement | Traditional Appeals |
|---|---|---|
| Timing | During exam (60 days goal) | After 30/90-day letter |
| Protest Required | No | Yes |
| Examiner Participation | Yes | No |
| Hazards of Litigation | Yes | Yes |
| Mediator | Appeals official | Appeals officer (decides) |
| Withdrawal Rights | Any time | Limited |
Tips for a Successful FTS Application
- Fully develop and document your position early.
- Keep issues limited and focused.
- Be prepared to discuss realistic compromises.
- Consider professional representation.
- Act promptly—ideally before any 30-day letter.
Frequently Asked Questions (FAQs)
Is Publication 5022 still current in 2026?
Yes. The IRS continues to reference it for SB/SE FTS on the official Fast Track page (last reviewed April 2025).
Can I use FTS for just one issue?
Under 2021 SB/SE rules, the case is evaluated as a whole, but discuss options with your examiner. Recent LB&I guidance expanded issue-by-issue flexibility—check with your SB/SE team for applicability.
Do I need a tax attorney?
Not required, but highly recommended for complex issues.
Is FTS confidential?
Yes—subject to standard IRS confidentiality rules.
What if my case is rejected for FTS?
No appeal of the rejection; continue with normal examination and appeal rights.
Conclusion: Resolve Your Small Business Tax Dispute Faster with IRS Fast Track Settlement
IRS Publication 5022 provides a clear roadmap for small businesses and self-employed taxpayers to resolve audit issues quickly and efficiently through Fast Track Settlement. By using this program, you can avoid lengthy traditional appeals, reduce costs, and achieve certainty sooner.
Always verify the latest procedures on IRS.gov, as program administration evolves. For personalized advice, consult a qualified tax professional or enrolled agent.
Ready to explore Fast Track Settlement?
Download Publication 5022 and Form 14017 today from IRS.gov and discuss options with your examiner.
Sources & Further Reading
- IRS Publication 5022 (Rev. 9-2021)
- IRS Fast Track Overview: irs.gov/appeals/fast-track
- Revenue Procedure 2017-25
- Your Appeal Rights (Publication 5)
This article is for informational purposes only and is not tax or legal advice.