Tuesday, October 29, 2013

An Option to Settle Tax Disputes Faster with the Mass. Dept. of Revenue (DOR)

Massachusetts Revenue Commissioner Amy Pitter announced that the Department of Revenue (DOR) will give taxpayers an option for settling tax disputes faster than traditional appeal methods or litigation following the success of a year-long early mediation pilot program.

According to the DOR's news release, "Three of four corporate taxpayers that participated in the pilot settled their $1 million dollar or more tax assessments during the very first mediation session. These cases with tax assessments ranging from $2.6 to $9.7 million closed in three-and-a-half to five months compared with the year or more it would have taken through the department’s regular appeals process."

"The success of the pilot encouraged DOR to make early mediation an integral part of the department’s resolution process and lower the eligibility requirement so more taxpayers can choose the option. The tax assessment threshold is now $250,000 instead of the $1 million dollar base for the pilot program. Other eligibility requirements for early mediation include:
  • Taxpayers must state their case and facts in writing,
  • The issues of the case must be fully developed,
  • Both the taxpayer and DOR must come to mediation willing to settle,
  • Decision makers for both the taxpayer and DOR must participate in the mediation sessions."
See also our law about page on Taxation.