SECTION 2. SCOPE

.01 TEB Mediation is an optional process. TEB Mediation may not be the appropriate dispute resolution process for all cases. The TEB Field Manager and the Is

suer must evaluate their individual circumstances to determine if this process meets their needs.

.02 TEB Mediation is generally available for all TEB cases within the jurisdiction of TEB in which:

(1) The factual issues are fully developed,

(2) There are a limited number of unagreed issues,

(3) The preliminary adverse determination letter has been issued ( see Rev. Proc. 99–35, § 4.04(1), 1999–2 C.B. 501, and any succeeding revenue procedure); and

(4) A written response to the preliminary adverse determination letter has been provided by the Issuer.

.03 TEB Mediation will not be available for any of the following issues:

(1) Legal issues for which there is no precedent;

(2) Issues in a taxpayer’s case designated for litigation;

(3) Issues docketed in any court; (4) Issues for which mediation would not be consistent with sound tax administration, e.g., issues governed by closing agreements, by res judicata, or by controlling precedent; and

(5) Issues for which a proposed adverse determination letter has been issued ( see Rev. Proc. 99–35, § 4.05(1), 1999–2 C.B. 501). The exclusion of an issue under this section, however, does not preclude the consideration of another issue in the case through the TEB Mediation process.