How can the IRS Collection Appeal Program help me if I have an IRS tax liability?
When a taxpayer has an IRS tax liability, the IRS can initiate aggressive enforced collection activities, such as issuing wage and bank levies and asserting liens. Sometimes the IRS determines that a different entity or individual is an alter ego or nominee of an entity or individual who has a liability. The IRS will aggressively monitor taxpayers with liabilities and take aggressive action when needed. Taxpayers facing the IRS should consider how a Los Angeles tax attorney can protect their rights. Also, the IRS may determine that a taxpayer’s ability to pay is much higher than it actually is.
If an IRS agent takes an action that you disagree with, you can file a Collection Appeal Program request to dispute the action taken. The appeal will be heard and decided by an IRS appeals officer. The appeals officer will have a manager, so it is often beneficial to discuss the matter with the manager. If you file a Collection Appeals Program (CAP) request then you will not have Tax Court rights to appeal the decision of the appeals officer.
You may file a CAP request if you have received any one of the following notices:
- Notice of Federal Tax Lien
- Notice of Levy
- Notice of Seizure
- Denial or Termination of Installment Agreement
A CAP is filed by filing an IRS collection appeals request form with the collections agent and requesting a meeting with the collection agent’s manager. The collection appeals request form can be found here: https://www.irs.gov/pub/irs-pdf/f9423.pdf
When you dispute an action taken by an IRS collection agent, you have the right to file a CAP. A CAP is a powerful tool to use to protect taxpayer’s rights. Generally, the process of filing a CAP consists of the following:
- Explain to the IRS collection agent why you disagree with his or her actions and that you want to appeal the decision.
- Be prepared to offer a solution. Paper your file by faxing documents and explanations to the collections agent to support your case.
- Discuss your case with a Collections manager and explain your position and why you disagree with the collection agent. The manager may side with you and offer a solution. Be prepared with documentation and substantiation to support your position.
- Complete Form 9423, Collection Appeals Request.
- You have 2 days from your conference with the Collections manager to submit Form 9423 to the Revenue Officer. Fax this to the collection agent and/or to the manager. Be prepared to offer any solutions you have and gather any supporting documentation you need to support your case. Typically the IRS tries to hear CAP requests within 2-5 business days.
If you have a tax liability, there are steps that can be taken to prevent unwanted IRS collection actions. If an IRS agent takes an unwanted action, you have appeal rights that can be very effective in obtaining a fair resolution to your matter. Don’t let the IRS take unwanted actions that could be harmful to you or your business. You can appeal the issuance of a levy or lien, a determination of your ability to pay, or an alter ego assessment.
If you have an aggressive collection agent pursuing you, you have rights and options to protect yourself and your livelihood. We are skilled and experienced in negotiating with the IRS on your behalf to obtain the best solution for you. Contact a Los Angeles tax attorney today for a free consultation.