IRS Accelerated Issue Resolution Lawyer

Our Lawyers Help Corporate Clients Negotiate Accelerated Issue Resolution (AIR) Agreements with the IRS

The Internal Revenue Service (IRS) offers several options to resolve tax disputes without Tax Court litigation. For corporate taxpayers, one of these options is negotiating an Accelerated Issue Resolution (AIR) agreement. If you have questions about negotiating an AIR agreement, a senior tax attorney at our firm can help you make informed decisions about your next steps.

For corporate taxpayers that are facing Internal Revenue Service (IRS) audits, it will generally be advantageous to target a resolution that avoids the need to go through the traditional appeal process. IRS appeals can be time-consuming and expensive for both the taxpayer and the government, and there is no guarantee that a traditional appeal will achieve the ultimate goal of avoiding unnecessary consequences.

Resolving Disputes Involving Corporate Income Tax and Other Issues During an IRS Examination

In some cases, businesses that are under examination can avoid the need for a traditional appeal by seeking guidance from the IRS Office of Chief Counsel through a pre-filing agreement (PFA) request or a request for a private letter ruling (PLR). But, if it is too late to avoid scrutiny during the IRS’s current audit cycle, it will be necessary to consider post-filing resolution options instead.

One of these options is to negotiate an Accelerated Issue Resolution (AIR) agreement with the IRS Large Business and International (LB&I) Division under its Large Corporate Compliance program.

Our tax lawyers are available to help large corporate taxpayers navigate the AIR process. While negotiating an AIR agreement can provide both tax certainty and procedural efficiency, corporate taxpayers must carefully decide if, when, and how to enter into negotiations during the examination process. We can provide the insights you need, and then we can negotiate with the IRS on your company’s behalf if warranted.

Entering Into an Accelerated Issue Resolution (AIR) Agreement During a Corporate Tax Audit

While all US taxpayers have options for resolving tax return issues with the IRS, many of these options go away once a tax audit is underway. But, even in this scenario, there are still options available. In large corporate compliance cases, for example, corporate taxpayers may be able to substantially mitigate their liability exposure by entering into an Accelerated Issue Resolution (AIR) closing agreement with the IRS.

As explained in the IRS’s Internal Revenue Manual:

“Accelerated issue resolution (AIR) allows Large Corporate Compliance (LCC) examination teams to apply the resolution of the same or similar issues from one tax period to another filed tax period. . . . AIR can be a very effective approach for getting current on issues. Teams should thoroughly evaluate prior tax period resolutions to identify those that can, with the taxpayer’s agreement, be applied to other filed returns.”

Corporate taxpayers can request an AIR from an IRS examination team, or examiners can offer an AIR agreement to corporate taxpayers as a means of resolution. If a corporate taxpayer enters into an AIR agreement, resolved issues involving relevant facts are no longer subject to review; however, similar positions taken on future returns could still trigger an audit.

When engaging in settlement discussions with the IRS, an informed and strategic approach is key. Whether corporate taxpayers need to defend claimed deductions, exemptions, or federal tax refunds, they must be prepared to substantiate their positions to the satisfaction of the IRS examination team manager. The IRS is not required to enter into an AIR agreement under any circumstances; and, if the IRS declines to settle, it can pursue any and all appropriate means of enforcement.

While one conference may be sufficient in some circumstances, negotiating an AIR agreement is a lengthy process in most cases. If both sides show interest in negotiating an AIR agreement, they will need to come to terms on each specific issue identified during the examination process. Our lawyers have extensive experience negotiating with the IRS; and, if seeking an AIR agreement is your company’s best option, we can negotiate with the appropriate IRS personnel on your company’s behalf.

We Also Serve as Legal Counsel for Other IRS Dispute Resolution Matters

When considering an AIR agreement, corporate taxpayers may want to consider various other means of post-filing dispute resolution as well. Some examples of other options that may be available include:

Fast-Track Settlement (FTS)

Fast-track settlement (FTS) is an option for taxpayers that have, “an unresolved issue or disagree with an IRS decision or action . . . and . . . wish to have an Appeals officer trained in mediation techniques work fairly and impartially,” to facilitate an amicable resolution. In 2025, the IRS announced a pilot program that revised the FTS eligibility criteria to allow for the resolution of one or more issues in a case even if other issues are ineligible. Taxpayers still have the right to pursue a traditional appeal if the FTS process is unsuccessful.

IRS Independent Office of Appeals (IRS Appeals)

Pursuing a traditional appeal with the IRS Independent Office of Appeals (IRS Appeals) remains an option as well. Taxpayers can also file a protest after an unfavorable resolution and seek relief in the Tax Court if necessary. The IRS Appeals Office will now provide a copy of the Appeals Case Memorandum that explains the reasoning for its final decision upon request, and this can provide key insight into potential grounds for pursuing litigation.

IRS Office of Chief Counsel

Seeking a resolution through the IRS Office of Chief Counsel can be a viable option in various circumstances. The Office of Chief Counsel administers various pre-filing and post-filing resolution programs, including the IRS’s private letter ruling (PLR) and pre-filing agreement (PFA) programs, among others.

Post-Appeals Mediation (PAM)

Post-appeals mediation (PAM) is an option for taxpayers that disagree with the settlement proposed by an Appeals officer during the traditional appeals process. PAM is voluntary for both taxpayers and the IRS; but, when it is a viable option, it can be a cost-effective alternative to litigating with the IRS in federal court.

Rapid Appeals Process (RAP)

The IRS Rapid Appeals Process allows for the resolution of post-filing tax disputes in one meeting. As the IRS explains, “RAP is a voluntary process . . . that allows an Appeals Team Case Leader or Appeals officer to convert [a] pre-conference meeting . . . into a working conference where the Appeals Team Case Leader or Appeals officer uses mediation techniques to resolve your unagreed issue.” Similar to FTS, pursuing RAP does not preclude taxpayers from pursuing a traditional appeal or Tax Court litigation if necessary.

FAQs: Resolving Corporate Tax Controversies with the IRS

Speak with an IRS Tax Dispute Resolution Lawyer at Oberheiden PC

If you would like more information about the IRS’s Accelerated Issue Resolution (AIR) closing agreement program for corporate taxpayers, we invite you to get in touch. Call 888-680-1745 or contact us confidentially online to speak with an experienced IRS tax lawyer at Oberheiden PC.

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