IRS Collection Case
If you have had an unfavorable decision regarding your IRS collection case, an IRS Collection Appeal may be the appropriate procedure to present your dispute.
You may appeal many IRS collection actions to the IRS Office of Appeals (Appeals). This office can be used to appeal threatened levies and liens, denials of installment agreements, and denied offers to compromise one’s tax.
Appeals is separate from and independent of the IRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policy of prohibiting certain ex parte communications with the IRS Collection office or other IRS offices, such as discussions regarding the strengths or weaknesses of your case.
Effective representation that understands the processes and tools available for an IRS Collection Appeal is critical to successful resolution of your tax problems.
A number of options are available for IRS collection appeal including:
- Collection Appeals Program (CAP)
- Collection Due Process (CDP)
- Offer in Compromise (OIC)
Collection Appeals Program (CAP)
The Collection Appeals Program (CAP) can be a quick option for an IRS Collection Appeal and is available for a broad range of collection disputes. Some of the more common uses of the collection appeals program is to appeal the denial or termination of an installment agreement request. However, one downside is that if you disagree with the IRS Appeals decision, you can’t go to Tax Court.
The CAP is available if you have received one of the following IRS notices:
- Before or after the IRS files a Notice of Federal Tax Lien
- Before or after the IRS levies or seizes your property
- Termination, or proposed termination, of an installment agreement
- Rejection of an installment agreement
- Modification, or proposed modification, of an installment agreement
The CAP procedure varies depending on whether your only collection contact has been a notice or telephone call or if you have already been in contact with a Revenue Officer.
Collection Due Process (CDP)
The Collection Due Process (CDP) is another option for an IRS Collection Appeal and can be a more lengthy process as compared to the Collection Appeals Program.
The CDP is available if you have received one of the following IRS notices:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
If you have an unfavorable decision with the Collection Due Process appeal, you may be able to take your case to Tax Court. You have 30 days to request a Collection Due Process hearing to preserve your right to go to court.
How To Request A CDP Or Equivalent Hearing With The Office Of Appeals
Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing , or other written request with the same information and send it to the address shown on your lien or levy notice. To request an equivalent hearing, you must check the Equivalent Hearing box on line 7 of Form 12153, or if you don’t use Form 12153 write that you want an equivalent hearing if the CDP hearing request is late.
Offer In Compromise (OIC)
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option for an IRS Collection Appeal if you can’t pay your full tax liability, or doing so creates a financial hardship. The IRS will consider your case based on your unique set of facts and circumstances:
- Ability to pay
- Asset equity
Our goal at Tax Samaritan is to provide the best counsel, advocacy and personal service for our clients. We are not only tax preparation and representation experts, but strive to become valued business partners. Tax Samaritan is committed to understanding our client’s unique needs; every tax situation is different and requires a personal approach in providing realistic and effective solutions.
If you need to file an IRS Collection appeal to stop an IRS levy or seizure, let our team of Enrolled Agents help you resolve your tax dispute. Please click the button below to request a Tax Resolution Quote today to get started with the preparation of your IRS Collection Appeal.
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation, including helping taxpayers with an IRS Collection Appeal. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.