Example:

The taxpayer provides new information during the appeals process, which warrants the Appeals Officer sending the case back to the field. FTS can still be used because the IRS hasn’t issued the 90-day letter.

FTS resolves factual and legal issues.

FTS enables the taxpayer to work with the examiner, the Group Manager, and Appeals.

All three parties (examination group, taxpayer, and Appeals) are active participants in the process.

All three must agree before a proposed resolution can be put in place.

All parties must commit to settling the issues involved.

The prohibition against ex-parte communications (Public Law 105-206, Section 1001(a)) between Appeals Officers and other IRS employees doesn’t apply to the FTS process. See Rev. Proc. 2012-18, Section 2.05. Appeals personnel:

Ease agreement between the taxpayer and Examination group.

Don’t act in their traditional Appeals settlement role.

To participate in FTS, the taxpayer must consent, per IRC 6103(c), to disclose the taxpayer’s returns and return information for the issues being considered in the FTS process to the individuals named on Form 14017, Application for Fast Track Settlement.

If the parties fail to resolve any issue in FTS, the taxpayer retains the right to protest the issue through the traditional Appeals process.