Today's top agribusiness headlines . To Settle Disputes Beginning this year, the IRS has a two-year test program of binding arbitration that might provide a good alternative to taking the agency to court in a tax dispute.
Arbitration can save taxpayers the cost and the time of a court battle.
The process also offers confidentiality because arbitration proceedings are not public record. Arbitration can be used only where issues of fact are in dispute. Also, arbitration cannot determine interpretation of the law, regulations or any other legal authority. The taxpayer must exhaust all other appeals within the IRS before arbitration can be used. Both sides must agree to arbitration and sign an agreement that they will be bound by the decision.