You may appeal many IRS collection activities to the IRS Office of Appeals. The Office of Appeals is separate from and independent of the IRS Collection office that initiated the collection action. The two main procedures are Collection Due Process (CDP) and Collection Appeals Program (CAP). The focus of this discussion is on CAP.
The CAP procedure is generally quicker and is available for a broader range of collection actions. However, you cannot go to court if you disagree with the CAP decision. You may represent yourself or you may be represented by an attorney, certified public accountant, or a person enrolled to practice before the IRS. Collection actions you may appeal under CAP are:
Notice of Federal Tax Lien. You may appeal the proposed filing of a Notice of Federal Tax Lien (NFTL) or the actual filing of an NFTL at the first and each subsequent filing of the NFTL. You are entitled to a CDP hearing after the first filing of an NFTL. You may also appeal denied requests to withdraw a NFTL, and denied discharges, subordinations, and non-attachments of a lien.
Notice of Levy. You may appeal before or after the IRS places a levy on your wages, bank account or other property. You may also have additional CDP appeal rights. Once the levy proceeds have been sent to the IRS, you may also appeal the denial by the IRS of your request to have levied property returned to you.
Seizure of Property. You may appeal before or after the IRS makes a seizure but before the property is sold. .
Rejection or Termination of Installment Agreement. You may appeal when the IRS rejects your request for an installment agreement. You may also appeal when the IRS proposes to terminate or terminates your installment agreement.
What will happen when you appeal your case?
Lien, Levy and Seizure: Normally, the IRS will not take any action to collect the tax for the tax periods Appeals is considering, unless the IRS believes the collection of the tax is at risk or you are a business meeting the criteria for a Disqualified Employment Tax Levy.
Installment Agreements: The IRS can’t levy until 30 days after the rejection or termination of your agreement. If you appeal within the 30-day period, the IRS will be prohibited from levying until your appeal is completed unless the IRS believes the collection of the tax is in jeopardy.
Once Appeals makes a decision regarding your case, that decision is binding on both you and the IRS.
If you require professional IRS Collection Appeals representation, call the tax professionals at East Coast Tax Consulting Group today at 561-826-9303.