Internal Revenue Code · 26 U.S.C.

§ 7123. Appeals dispute resolution procedures

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 7123

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: July 22, 1998 by Pub. L. 105–206
Last amended: July 1, 2019 by Pub. L. 116–25
Amendments: 2 dated changes in the source credit
Length: 3 subsections · 354 words · about 2 min to read
Cross-references: cites 6; cited by 0 Code sections and 0 other regulations

¶(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.

¶(b) Alternative dispute resolution procedures

¶(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—

¶(A) appeals procedures; or

¶(B) unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.

¶(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—

¶(A) appeals procedures; or

¶(B) unsuccessful attempts to enter into a closing agreement under section 7121 or a compromise under section 7122.

¶(c) Administrative appeal relating to adverse determination of tax-exempt status of certain organizations

¶(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) 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—

¶(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),

¶(B) the initial classification or continuing classification of the organization as a private foundation under section 509(a), or

¶(C) the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).

(Added Pub. L. 105–206, title III, § 3465(a)(1), July 22, 1998, 112 Stat. 768; amended Pub. L. 114–113, div. Q, title IV, § 404(a), Dec. 18, 2015, 129 Stat. 3118; Pub. L. 116–25, title I, § 1001(b)(1)(G), July 1, 2019, 133 Stat. 985.)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 6 other sections

Amendment history

From the source credit and the official notes, newest first.

July 1, 2019Amended by Pub. L. 116–25
December 18, 2015Amended by Pub. L. 114–113Parts changed in 2015: (c)
July 22, 1998Added by Pub. L. 105–206

Where it sits in the Code

Nearby sections

§ 7121 Closing agreements
§ 7122 Compromises
§ 7123 Appeals dispute resolution procedures
§ 7124 Cross references

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Prior Provisions

A prior section 7123 was renumbered section 7124 of this title.

Amendments

2019—Pub. L. 116–25 substituted “Internal Revenue Service Independent Office of Appeals” for “Internal Revenue Service Office of Appeals” wherever appearing.

2015—Subsec. (c). Pub. L. 114–113 added subsec. (c).

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title IV, § 404(b), Dec. 18, 2015, 129 Stat. 3118, provided that: “The amendment made by subsection (a) [amending this section] shall apply to determinations made on or after May 19, 2014.”