26 U.S.C. § 7123. Appeals dispute resolution procedures

1. (a)
   (a)

   Early referral to appeals procedures

   The Secretary shall prescribe procedures by which any taxpayer may request early referral of 1 or more unresolved issues from the examination or collection division to the Internal Revenue Service Independent Office of Appeals.
2. (b)
   (b)

   Alternative dispute resolution procedures

   1. (1)
      (b)(1)

      Mediation

      The Secretary shall prescribe procedures under which a taxpayer or the Internal Revenue Service Independent Office of Appeals may request non-binding mediation on any issue unresolved at the conclusion of—

      1. (A)
         (b)(1)(A)appeals procedures; or
      2. (B)
         (b)(1)(B)unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
   2. (2)
      (b)(2)

      Arbitration

      The Secretary shall establish a pilot program under which a taxpayer and the Internal Revenue Service Independent Office of Appeals may jointly request binding arbitration on any issue unresolved at the conclusion of—

      1. (A)
         (b)(2)(A)appeals procedures; or
      2. (B)
         (b)(2)(B)unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.
3. (c)
   (c)

   Administrative appeal relating to adverse determination of tax-exempt status of certain organizations

   1. (1)
      (c)(1)

      In general

      The Secretary shall prescribe procedures under which an organization which claims to be described in section 501(c) may request an administrative appeal (including a conference relating to such appeal if requested by the organization) to the Internal Revenue Service Independent Office of Appeals of an adverse determination described in paragraph (2).
   2. (2)
      (c)(2)

      Adverse determinations

      For purposes of paragraph (1), an adverse determination is described in this paragraph if such determination is adverse to an organization with respect to—

      1. (A)
         (c)(2)(A)the initial qualification or continuing qualification of the organization as exempt from tax under section 501(a) or as an organization described in section 170(c)(2),
      2. (B)
         (c)(2)(B)the initial classification or continuing classification of the organization as a private foundation under section 509(a), or
      3. (C)
         (c)(2)(C)the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).