This announcement renews the Tax Exempt Bond Mediation Pilot Program set forth in Announcement 2003-36, 2003-1 C.B. 1093, for an additional one-year period, beginning on the date this announcement is published in the Internal Revenue Bulletin.

TEB and Appeals concluded a two-year test of the Tax Exempt Bond Mediation Pilot Program on June 3, 2005. During the additional one-year test period, TEB and Appeals will seek additional cases for mediation to further evaluate the program. The renewed program will follow the provisions of Ann. 2003-36.

This procedure allows Issuers of tax-exempt debt with cases under examination by the Tax Exempt Bond (TEB) organization to request mediation as permitted under Announcement 2003-36. Using the services of a trained mediator from the Office of Appeals, with the option of using a non-Service co-mediator, the Issuer and TEB will attempt to resolve unagreed issues on an expedited basis prior to the issuance of a proposed adverse determination letter. The mediation program is consistent with the Internal Revenue Service’s efforts to improve tax administration, provide customer service, and reduce taxpayer burden.