Alternative dispute resolution procedures

(a) In general Section 7123 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (d) Availability of dispute resolutions (1) In general The procedures prescribed under subsection (b)(1) and the pilot program established under subsection (b)(2) shall provide that a taxpayer may request mediation or arbitration in any case unless the Secretary has specifically excluded the type of issue involved in such case or the class of cases to which such case belongs as not appropriate for resolution under such subsection. The Secretary shall make any determination that excludes a type of issue or a class of cases public within 5 working days and provide an explanation for each determination. (2) Independent mediators (A) In general The procedures prescribed under subsection (b)(1) shall provide the taxpayer an opportunity to elect to have the mediation conducted by an independent, neutral individual not employed by the Internal Revenue Service Independent Office of Appeals. (B) Cost and selection (i) In general Any taxpayer making an election under subparagraph (A) shall be required— (I) to share the costs of such independent mediator equally with the Internal Revenue Service Independent Office of Appeals, and (II) to limit the selection of the mediator to a roster of recognized national or local neutral mediators. (ii) Exception Clause (i)(I) shall not apply to any taxpayer who is an individual or who was a small business in the preceding calendar year if such taxpayer had an adjusted gross income that did not exceed 250 percent of the poverty level, as determined in accordance with criteria established by the Director of the Office of Management and Budget, in the taxable year preceding the request. (iii) Small business For purposes of clause (ii), the term small business has the meaning given such term under section 41(b)(3)(D)(iii). (3) Availability of process The procedures prescribed under subsection (b)(1) and the pilot program established under subsection (b)(2) shall provide the opportunity to elect mediation or arbitration at the time when the case is first filed with the Internal Revenue Service Independent Office of Appeals and at any time before deliberations in the appeal commence.. (b) Effective date The amendment made by this section shall take effect on the date of the enactment of this Act.