Options for Appealing an IRS Collection Action

 Posted on October 27, 2017 in Tax Appeals

If, when filing your tax return, you owe taxes to the Internal Revenue Service (IRS) and you do not pay them at that time, the IRS will bill you for the taxes that are due. They will send at least two notices. Additionally, if taxes are not paid after you receive a final notice, the IRS will begin to take collection actions. These actions can include applying the amount of your future tax refunds to the amount due, or seizing your property and financial assets.

If you are unable to pay your taxes, you are likely already having financial difficulties. Moreover, if you receive a notice that the IRS plans to initiate a collection action, you may worry about the possible consequences. In these cases, an experienced tax attorney can help you appeal the IRS’s decision through one of the following procedures.

Collection Due Process (CDP)

You have the right to request a CDP hearing when you receive one 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; and
• Notice of Levy and of Your Right to a Hearing.

A request for a CDP hearing must be filed within 30 days of when the notice was mailed to you. During the hearing, you may explain why you disagree with the collection action, including demonstrating that it would cause economic hardship, or you may offer alternatives for paying the taxes that are due, such as an installment agreement or an offer in compromise.

If you disagree with the determination of the CDP hearing, you may appeal the decision in Tax Court.

Collection Appeals Program (CAP)

The CAP procedure is available in the following situations:

• Before or after the IRS files a Notice of Federal Tax Lien;
• Before or after the IRS levies or seizes your property; and
• An installment agreement is rejected, terminated, or modified.

During the CAP process, you can dispute collection actions and offer solutions to resolve your tax liability. While the CAP process is available for more collection actions than a CDP hearing, CAP does not allow you to dispute your actual tax liability, and you cannot appeal a CAP decision in Tax Court.

Contact a San Jose Tax Lawyer

If you are facing a tax lien or levy or another type of IRS collection action, you should not approach the tax appeal process on your own. An experienced attorney can help you understand the best procedure to use and ensure that you are meeting your requirements, therefore allowing you to resolve this difficult issue with minimal financial hardship. Contact the San Jose tax appeals attorney at John D. Teter Law Offices by calling 408-866-1810.

Sources:

https://www.irs.gov/pub/irs-pdf/p594.pdf

https://www.irs.gov/pub/irs-pdf/p1660.pdf