Easing restrictions, sharpening personal attention and clarifying denials are among the aims of three pilot programs at the Internal Revenue Service that will test changes to existing alternative dispute resolution programs. 

The programs focus on “fast track settlement,” which allows IRS Appeals to mediate disputes between a taxpayer and the IRS while the case is still within the jurisdiction of the examination function, and post-appeals mediation, in which a mediator is introduced to help foster a settlement between Appeals and the taxpayer.

The IRS has been revitalizing existing ADR programs as part of transformation efforts of the agency’s new strategic plan, said Elizabeth Askey, chief of the IRS Independent Office of Appeals.

“By increasing awareness, changing and revitalizing existing programs and piloting new approaches, we hope to make our ADR programs, such as fast-track settlement and post-appeals mediation, more attractive and accessible for all eligible parties,” said Michael Baillif, director of Appeals’ ADR Program Management Office. 

Among other improvements, the pilots: 

• Align the Large Business and International, Small Business and Self-Employed and Tax Exempt and Government Entities divisions in offering FTS issue by issue. Previously, if a taxpayer had one issue ineligible for FTS, the entire case was ineligible. 
• Provide that requests to participate in FTS and PAM will not be denied without the approval of a first-line executive. 
• Clarify that taxpayers receive an explanation when requests for FTS or PAM are denied.

Another pilot, Last Chance FTS, is a limited scope SB/SE pilot in which Appeals will call taxpayers or their representatives after a protest is filed in response to a 30-day or equivalent letter to inform taxpayers about the potential application of FTS. This pilot will not impact eligibility for FTS but will simply test the awareness of taxpayers regarding the availability of FTS. 

A final pilot removes the limitation that participation in FTS would preclude eligibility for PAM. 

The traditional appeals process remains available for all taxpayers. 

Inquiries can be addressed to the ADR Program Management Office at [email protected].

The Internal Revenue Service has updated and added new guidance for taxpayers claiming the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit.

The updated Fact Sheet 2025-01 includes a set of frequently asked questions and answers, superseding the fact sheet from last April. The IRS noted that the updates include substantial changes.

New sections have been added on how long a taxpayer has to claim the tax credits, guidance for condominium and co-op owners, whether taxpayers who did not previously claim the credit can file an amended return to claim it, and a series of questions on qualified manufacturers and product identification numbers. Other material has been added on how to claim the credits, what kind of records a taxpayer has to keep for claiming the credit, and for how long, and whether taxpayers can include financing costs such as interest payments in determining the amount of the credit.

The IRS states that “financing costs such as interest, as well as other miscellaneous costs such as origination fees and the cost of an extended warranty, are not eligible expenditures for purposes of the credit.” 

The International Ethics Sustainability Board for Accountants said Friday its Global Ethics Sustainability Standards have been certified by the Public Interest Oversight Board, which oversees IESBA, as well as the International Organization of Securities Commissions, ahead of the official launch later this month.

Both the PIOB and IOSCO issued a statement of support calling on their members to either apply or be informed by the new framework.

The official launch of the new standards will occur on Jan. 27, 2025, in conjunction with the International Auditing and Assurance Standards Board’s International Standard on Sustainability Assurance 5000 (ISSA 5000). The IESBA and IAASB coordinated on developing interoperable global standards for assurance, ethics and independence for sustainability assurance engagements. They are both affiliated with the International Federation of Accountants.

The Global Ethics Sustainability Standards include the International Ethics Standards for Sustainability Assurance (including International Independence Standards) and the revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) related to sustainability reporting and to the use of the work of an external expert.

The new standards offer an ethical framework for reporting and assuring sustainability-related information to provide more reliable information to investors, lenders, customers, suppliers, government, regulators and other stakeholders. The new standards and revisions to the code of ethics include guidance on use of the work of outside experts. They also address risks to the integrity, quality and effectiveness of sustainability reporting and assurance such as bias, conflicts of interest, pressure to act unethically, fraud including greenwashing, noncompliance with laws and regulations, and threats to the independence of assurance practitioners.

Victor Machado/Bluepeach

“The certification of IESBA’s new ethics standards framework for sustainability and experts, along with IOSCO’s call for its members to adopt or be informed by the framework, marks a significant step to cement ethics as the foundation of trust and accountability in sustainability reporting and assurance,” said IESBA chair Gabriela Figueiredo Dias in a statement Friday. “The global sustainability standards infrastructure is now complete, with the ethics piece providing foundational instruments to underpin transparent, relevant and trustworthy sustainability information. Looking forward to the joint launch with IAASB of the new ethics and assurance standards, join us on January 27.”

The final standards can be found on IESBA’s website.