A taxpayer can appeal most collection actions. If the request for appeal is timely, in most cases, all collection activity will stop during the appeals process. The main options for appeals are the following:
Collection Due Process (CDP)
The purpose of a Collection Due Process hearing is to review collection actions that were taken or have been proposed. You can request a Collection Due Process hearing if you receive any of the following notices:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing
- 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
- Notice of Levy and of Your Right to a Hearing
To request a Collection Due Process hearing, complete Form 12153, Request for a Collection Due Process or Equivalent Hearing, and send it to the address on the notice. A taxpayer has 30 days from the date of the notice to request a Collection Due Process hearing. You can also request an Equivalent Hearing within one year from the date of the notice, but this will not stop collection action.
Collection Appeals Program (CAP)
Under the Collections Appeals Program, if a taxpayer disagrees with an IRS employee’s decision and wants to appeal it, you can ask their manager to review your case. If you then disagree with the manager’s decision, you may continue with the Collection Appeals Program. Some of the decisions that can be appealed under the CAP are:
- Before or after the filing of a Notice of Federal Tax Lien
- Before or after we seizure of (“levy”) property
- After the IRS rejects, terminates, or proposes to terminate an Installment Agreement (a conference with the manager is recommended, but not required).
You may want to consider consulting a tax attorney for IRS help. Jeffrey R. Siegel, Esq. can help you navigate through the tax law associated with your situation. Call our tax lawyer now.