Following a successful year-long evaluation, DOR has made permanent a pilot program that uses trained mediators to produce a settlement in an average of four months. In the past, tax disputes typically required a year or more to resolve. Four test cases were part of the pilot program, with disputed tax assessments ranging from $2.6 million to $9.7 million. Three of the four cases were settled during the initial mediation session.

A minimum tax assessment of $250,000 is required to be eligible for the new mediation process. Additional requirements include:

• Taxpayer must state their case in writing
• Issues of the case must be fully developed
• Both taxpayer and DOR must enter mediation with a willingness to settle
• Decision makers for both taxpayer and DOR must participate in the mediation sessions

For additional information on this new tax dispute mediation program, please visit Early Mediation Administrative Procedures on the DOR website, www.mass.gov/dor.

While the new mediation process holds out the promise of faster resolution of tax disputes, negotiating a fair settlement demands a careful examination of the facts in a complex situation. If you find yourself with a questionable tax assessment, you should not address the issue alone. Please contact Gray, Gray & Gray's Tax Department at (781) 407-0300 for guidance and assistance.