§ 7123. Appeals dispute resolution procedures

• (a) 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.
• (b)
  • (1) 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—
    • (A) appeals procedures; or
    • (B) unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
  • (2) 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—
    • (A) appeals procedures; or
    • (B) unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
• (c)
  • (1) 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).
  • (2) For purposes of paragraph (1), an adverse determination is described in this paragraph if such determination is adverse to an organization with respect to—
    • (A) 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),
    • (B) the initial classification or continuing classification of the organization as a private foundation under section 509(a), or
    • (C) the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).