SECTION 3. CASE ELIGIBILITY AND

EXCLUSIONS

.01 FTM is generally available for all non-docketed cases and collection source work over which SB/SE has jurisdiction, including offer in compromise (OIC), trust fund recovery penalty (TFRP) and collection due process (CDP) cases. FTM is generally not available for issues for which resolution will depend on an assessment of the hazards of litigation and which require the FTM Appeals Official to use delegated settlement authority.

.02 The following issues and cases are not eligible for inclusion in the FTM program:

June 23, 2003 1047 2003–25 I.R.B.

substantial amount of documentary information; or (c) the taxpayer wishes to present witnesses, including experts. Any such postponements to allow both parties the opportunity to review and evaluate the new information may result in a longer period for completion of the FTM process. If requested by either party, the FTM Appeals Official may allow a reasonable delay in the proceedings if the FTM Appeals Official determines it is warranted. Any delays will be communicated to, and coordinated with, both parties.

.07 The FTM Appeals Official does not have settlement authority and will not render a decision regarding any issue in dispute. The issues submitted to the FTM process may only be resolved if both the taxpayer and SB/SE reach an agreement.

.08 Communications made during an FTM session are confidential. Employees of the Service, or persons invited by the Service to participate in FTM, must adhere to the confidentiality and disclosure provisions of the Internal Revenue Code, including sections 6103, 7213 and 7431. Employees of the Service, the taxpayers and persons invited by the Service and the taxpayer to participate in FTM shall not voluntarily disclose information regarding any communication made during the FTM session, except as provided by statute, such as in sections 6103 and 7214(a)(8) and 5 U.S.C. § 574.

.09 By signing the Agreement to Mediate, attached as Exhibit 1, the taxpayer consents, pursuant to section 6103(c), to the disclosure of the taxpayer’s returns and return information pertaining to the issues considered in FTM to those persons named on the Agreement as participants or observers. If the Agreement to Mediate is executed by a person pursuant to a power of attorney executed by the taxpayer, that power of attorney must express the taxpayer’s grant of authority to consent to disclose the taxpayer’s returns and return information by the Service to third parties, and a copy of that power of attorney must be attached to the agreement.

.10 The prohibition against ex parte communications between Appeals Officers and other Service employees provided by section 1001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998 does not apply to the communications arising in the FTM program because Appeals personnel, in facilitating an

veloped. The respective managers and taxpayers must evaluate their individual circumstances to determine if the FTM program meets their needs, e.g., whether the number of issues is manageable within a 30 to 40-day time frame.

.04 Application to the FTM process should only be initiated if there is sufficient time remaining on the period of limitations for assessment and collection. Consistent with current Compliance procedures, a case should not be submitted to the FTM program if the failure to resolve any issue in the FTM process would result in Compliance forwarding the case to Appeals with less than 180 days remaining on the statute of limitations.