IRS Encourages Taxpayers to Use Post Appeals Mediation

 Posted on October 27, 2025 in Taxation Law

There are numerous reasons why taxpayers may take steps to appeal the decisions made by the IRS. Tax appeals can address unfavorable decisions made during tax audits, or they may be related to the assessment of penalties by the IRS. Even if appeals are unsuccessful, taxpayers may still have options. Currently, the IRS is taking steps to encourage the use of Post Appeals Mediation (PAM), which may allow cases to be resolved without the need for litigation.

Tax appeals can be complicated, and they may not always lead to favorable results. Taxpayers who wish to appeal the decisions made by the IRS or who need to determine how to move forward after an unsuccessful appeal can work with an experienced tax lawyer to address these issues. An attorney who has an understanding of tax laws and the procedures followed during appeals and litigation can provide guidance on whether Post Appeals Mediation or other forms of alternative dispute resolution (ADR) may be used to help a taxpayer achieve their goals.

What Is Post Appeals Mediation?

When an appeal made through the IRS Independent Office of Appeals is unsuccessful, a taxpayer may have the option to resolve the issue through Post Appeals Mediation. When a taxpayer’s request for PAM is accepted, a mediator will be assigned to the case. The mediator will be independent of the IRS personnel that the taxpayer had worked with previously, but they will be an employee of the IRS. If necessary, a taxpayer may also have an independent co-mediator involved in the case at their own expense.

During Post Appeals Mediation, the taxpayer will work with the IRS and the mediator(s) to resolve the outstanding issues in their case. The parties will need to agree on all decisions made. This can provide a taxpayer with more control over the outcome of their case, since no other parties can impose a decision on them during mediation. In most cases, mediation sessions will last no more than one day.

While PAM may be used to address the legal issues and factual disputes involved in an appeal, there are certain types of cases that will not be eligible for PAM. These include:

• Offers in compromise that are considered by an IRS campus site

• Issues that have been designated for litigation or docketed in a court

• "Whipsaw" issues involving multiple parties that may result in inconsistent outcomes due to the non-participation of one party

• Most cases involving collections

New Pilot Program Encourages the Use of PAM

The IRS has announced a two-year pilot program that is meant to encourage more taxpayers to use PAM. Under this program, when a taxpayer’s request for PAM is accepted, the case will be reassigned to a new team within the IRS Independent Office of Appeals. This team will not be connected to the original case, and it will represent the IRS during mediation sessions. All other aspects of the mediation process will remain the same.

The goal of this pilot program is to provide a fresh look at a case and help resolve issues more quickly and efficiently. The IRS hopes that encouraging taxpayers to use PAM or other ADR methods may help to avoid prolonged litigation and resolve tax disputes effectively.

Contact Our San Jose, CA Tax Appeals Attorney

Taxpayers who are involved in tax audits, who are looking to appeal unfavorable decisions by the IRS, or who want to understand what options for dispute resolution may be available can benefit greatly from legal representation by an attorney who has a strong understanding of the applicable laws and the procedures followed by the IRS. At John D. Teter Law Offices, our San Jose tax lawyer can provide the legal help needed to address tax-related issues and resolve cases while minimizing a taxpayer’s financial losses. Contact us at 408-866-1810 to arrange a consultation.