IRS Dispute Resolution Program Use Rises After Years of Lagging

Companies and individuals increasingly are taking alternative avenues to resolve their tax disputes with the IRS to avoid costly and drawn-out litigation.

Alternative dispute resolution options are more popular than they’ve been in years, with use growing 25% in fiscal year 2024, according to an IRS spokesperson. Participation kept rising in fiscal year 2025, though the agency couldn’t provide specific figures due to the ongoing federal government shutdown.

The uptick comes after years of watchdogs lamenting underuse of the programs. These options help the IRS and taxpayers resolve disputes before litigation—which is expensive, public, and time-consuming. The IRS took a ...