SECTION 5. SCOPE OF MEDIATION

AND ARBITRATION FOR TFRP CASES

1. Appropriate issues for mediation in TFRP cases generally include:

2011–4 I.R.B. 434 January 24, 2011

e. A representation that the disputed issue is not an excluded issue listed in section 4.01 above or in Revenue Procedure 2009–44 or Revenue Procedure 2006–44.

4. For a TFRP case, the written request to mediate or arbitrate should contain items a through e in section 6.03 above and a detailed explanation of the taxpayer’s position, including explanations of the following (where applicable):

a. Why the taxpayer was not required to collect, truthfully account for, and pay over the income, employment or excise taxes; b. Why the taxpayer did not willfully fail to collect or truthfully account for and pay over such tax, or willfully attempt in any manner to evade or defeat the payment of such tax; and c. Why the computation of the Trust Fund Recovery Penalty should reflect payment(s) designated specifically to the trust fund portion of the unpaid tax.

5. If the taxpayer wants to use a non-IRS co-mediator (at the taxpayer’s expense) or a non-IRS arbitrator (expense shared equally by the taxpayer and Appeals), the application should state this preference.