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Internal Revenue Code, § 7123. Appeals Dispute Resolution Procedures

I.R.C. § 7123(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 Independent Office of Appeals.
I.R.C. § 7123(b) Alternative Dispute Resolution Procedures
I.R.C. § 7123(b)(1) 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--
I.R.C. § 7123(b)(1)(A)
appeals procedures; or
I.R.C. § 7123(b)(1)(B)
unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
I.R.C. § 7123(b)(2) 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--
I.R.C. § 7123(b)(2)(A)
appeals procedures; or
I.R.C. § 7123(b)(2)(B)
unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
I.R.C. § 7123(c) Administrative Appeal Relating To Adverse Determination Of Tax-Exempt Status Of Certain Organizations
I.R.C. § 7123(c)(1) 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).
I.R.C. § 7123(c)(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—
I.R.C. § 7123(c)(2)(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),
I.R.C. § 7123(c)(2)(B)
the initial classification or continuing classification of the organization as a private foundation under section 509(a), or
I.R.C. § 7123(c)(2)(C)
the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).
(Added by Pub. L. 105-206, title III, Sec. 3465(a)(1), July 22, 1998, 112 Stat 685; amended by Pub. L. 114-113, Div. Q, title IV, Sec. 404(a), Dec. 18, 2015; Pub. L. 116-25, title I, Sec. 1001(b)(1)(G), July 1, 2019, 133 Stat. 981.)
BACKGROUND NOTES
AMENDMENTS
2019 - Subsec. (a), (b)(1), (b)(2), (c)(1). Pub. L. 116-25, Sec. 1001(b)(1)(G), amended by substituting “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals”.
2015 - Subsec. (c). Pub. L. 114-113, Div. Q, Sec. 404(a), added subsec. (c).
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-25, title I, Subtitle A, Sec. 1001(b)(1)(G), effective on the date of the enactment of this Act [Enacted: July 1, 2019].
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Pub. L. 114-113, Div. Q, Sec. 404(a), effective for determinations made on or after May 19, 2014.
Prior Provision
A prior section 7123 was redesignated as section 7124 by Pub. L. 105-206, Sec. 3465(a)(1).