IRS Rapid Appeals Process Lawyer

Our Lawyers Help Taxpayers Navigate the Internal Revenue Service (IRS) Rapid Appeals Process (RAP)

The Rapid Appeals Process (RAP) allows taxpayers to resolve tax controversies with the IRS without pursuing a traditional appeal or going to the US Tax Court. If you are facing (or your business is facing) additional tax liability as the result of an IRS audit, pursuing RAP could be a good option. A tax attorney at Oberheiden PC can help you make an informed decision.

**Attorney Lynette Byrd**
Tax Fraud and Evasion Team Lead
Former DOJ Attorney

**Attorney Alina Veneziano**
Tax Attorney & CPA Team Lead

**Alice Campbell**
Tax Team Former Special Agent (IRS)

The IRS’s Rapid Appeals Process (RAP) is an alternative dispute resolution program that allows taxpayers to resolve audit-related disputes without pursuing a traditional appeal or pursuing litigation in the US Tax Court. While the RAP program is administered by the IRS Office of Appeals, pursuing RAP is very different from pursuing a traditional appeal. After the parties’ initial preparations and communications, the RAP process takes place over a single day, and the goal is to achieve a negotiated settlement.

Pursuing RAP can be a viable option for individual and business taxpayers facing additional liability in connection with a variety of federal tax matters. If Internal Revenue Service employees are accusing you (or your business) of underreporting or underpayment, targeting a negotiated settlement could be a desirable solution. With that said, whether it makes sense to settle depends on the circumstances at hand; and, if an IRS examination team has incorrectly determined your (or your business’s) liability, there are other options for resolving disputes in this scenario.

RAP Seeks to Resolve TAX Disputes Through a Single Appeals Conference

The Rapid Appeals Process (RAP) seeks to resolve IRS disputes related to tax assessments imposed during an audit or examination. If revenue agents or other IRS employees are pursuing enforcement under the nation’s tax laws, pursuing RAP and exploring your settlement options could be a viable strategy for avoiding unnecessary liability for back taxes, interest, and penalties.

Here is a brief overview of the process:

Requesting and Preparing for RAP

Taxpayers who wish to participate in the Rapid Appeals Process must submit a request to IRS Appeals. If a taxpayer requests RAP and IRS Appeals approves, the taxpayer will then need to gather relevant evidence and prepare legal arguments to present at the RAP session (more on this below). If you are considering RAP, our tax lawyers can assist with determining whether this is a viable option; and, if it is, we can assist with your preparations.

Ex Parte Communications

After a taxpayer requests RAP, IRS Appeals will typically ask the taxpayer to sign a waiver allowing for ex parte communication between the Appeals officer and the examination team manager. While the IRS advises that, “RAP works best when the taxpayer/representative signs a waiver for the term of the session to allow ex parte communications,” taxpayers need to make an informed decision focused on their best interests. While signing a waiver agreement may be a reasonable approach in most cases, taxpayers need to take into account their unique circumstances when deciding how to proceed.

The RAP Session

Unlike a traditional appeal, the Rapid Appeals Process is designed to take place in a single session. IRS Appeals will issue a hearing notice specifying the date of this session, and the Appeals officer assigned to the case will review all evidence submitted in advance. As the IRS explains:

“RAP is a voluntary process designed to be completed in one conference that allows an Appeals Team Case Leader or Appeals officer to convert the pre-conference meeting with you and, the IRS agent, and Appeals into a working conference where the Appeals Team Case Leader or Appeals officer uses mediation techniques to resolve your unagreed issue.”

The goal of the RAP process is to facilitate negotiations in accordance with the IRS’s settlement guidelines. The process relies on voluntary compliance and good-faith negotiations; and, if either party is unwilling to settle, the taxpayer retains the ability to file a formal protest and pursue a traditional appeal.

Settlement

If an acceptable settlement offer is on the table, both parties can agree to move forward with their negotiated resolution. The IRS’s decision to settle a taxpayer’s liability is binding on both parties once a settlement agreement is signed. As a result, taking advantage of the RAP process can be highly advantageous in the right circumstances—particularly for taxpayers who are facing federal tax liens and collection actions if they don’t settle.

Closure of the Taxpayer’s Case

When a taxpayer and the IRS settle through the RAP process, this closes the taxpayer’s case. If necessary, taxpayers who settle with the IRS can seek an installment agreement or pursue other means of avoiding payment defaults as well. If a taxpayer does not comply with the terms of a negotiated settlement, this can lead to enforcement action—and potentially the need to request a collection due process (CDP) hearing or pursue a collection appeals program (CAP) appeal.

RAP Allows Taxpayers to Avoid the Traditional IRS Appeals Process

As discussed above, participating in the RAP process allows taxpayers to avoid the traditional appeals process. A traditional appeal is a much more involved process, and this means that the costs involved are generally greater as well. Crucially, while disclosures made during RAP discussions are generally managed to protect taxpayers’ legal rights, taxpayers still need to be very careful to avoid disclosures that have the potential to result in negative repercussions.

Taxpayers Can Still File with the IRS Independent Office of Appeals if Necessary

The RAP process is primarily intended for large businesses, international tax disputes and other specialized cases. Due to the complexity of the tax issues that are typically involved, the process won’t always result in an agreed resolution. If providing a clear statement of disputed issues and supporting documents during the process does not lead to a favorable settlement offer, taxpayers can still pursue traditional appeals (or other means of resolution) as warranted.

Our tax lawyers are available to help business owners, in-house attorneys, high-net-worth taxpayers, and other individuals make informed decisions about whether to pursue the Rapid Appeals Process (RAP). We also help clients consider alternatives to RAP, and we help taxpayers substantiate their tax positions in all types of challenges and appeals. We provide experienced representation for navigating all of the IRS’s complex appeals processes, and we focus on minimizing our client’s liability in every matter we handle.

FAQs: What Taxpayers Should Know About the IRS’s Rapid Appeals Process (RAP)

What is the IRS’s Rapid Appeals Process (RAP)?

The Rapid Appeals Process (RAP) was introduced in 2005 as a way for eligible taxpayers to efficiently resolve complex disputes with the IRS. While it is often discussed alongside the IRS’s Fast-Track Settlement (FTS) program, RAP and FTS are very different IRS resolution programs. Pursuing RAP involves going to the IRS Independent Office of Appeals; however, the RAP process is much more streamlined than a traditional appeal.

How can taxpayers participate in the Rapid Appeals Process (RAP) with the IRS Appeals Office?

Eligible taxpayers can request to participate in the Rapid Appeals Process (RAP) following an IRS audit or examination. Taxpayers must comply with strict deadlines when filing traditional IRS appeals (taxpayers typically have 30 days to request an appeal following an unfavorable audit determination), and seeking to participate in RAP starts with filing a formal written protest by the applicable deadline.

Do IRS Appeals officers make a binding decision during the Rapid Appeals Process (RAP)?

No, IRS Appeals officers do not make binding decisions during the Rapid Appeals Process (RAP). Instead, the goal of the process is to facilitate a negotiated settlement. Most IRS appeals cases settle before reaching the US Tax Court; and, during the Rapid Appeals Process, an experienced tax attorney will be able to communicate with the appropriate IRS personnel in order to target a settlement that avoids unnecessary liability.

How does the Rapid Appeals Process (RAP) differ from the IRS’s Collection Appeals Program (CAP)?

While the Rapid Appeals Process (RAP) focuses on challenging the outcome of an IRS audit, the Collection Appeals Program (CAP) focuses on challenging specific collection actions, such as tax liens, tax levies, and installment agreement denials. If you are facing (or your business is facing) collection efforts from the IRS, our tax attorneys can help in this scenario as well.

How does the Collection Appeals Program (CAP) differ from a Collection Due Process (CDP) hearing?

The Collection Appeals Program (CAP) covers a broad range of collection-related activities, while the Collection Due Process (CDP) hearing process is specific to challenging formal notices related to imminent liens, levies, and seizures. Taxpayers have 30 days to request a CDP hearing after receiving a relevant notice, and unfavorable CDP determinations can be challenged in the US tax court.

Speak with an IRS Rapid Appeals Process (RAP) Lawyer at Oberheiden PC

If you would like more information about the IRS Rapid Appeals Process (RAP) or any of the other options that are available for challenging unfavorable audit determinations and IRS collection actions, we encourage you to contact us promptly. Call us at 888-680-1745 or contact us online to schedule a free and confidential consultation at Oberheiden PC.

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