Appeals in Collections Matters
You can also appeal many of the actions the IRS has taken in the collection of taxes. Collection actions can include bank levy, wage garnishment, federal tax lien and more. Here are some of the more common requests for IRS Collection Appeals:
- Unfair filing of a federal tax lien
- Proposed levy of your bank accounts
- Seizure and sale of property
- Unfair rejection or termination of an installment agreement
- Unfair rejection of your offer in compromise?
- Unfair trust fund recovery penalties for payroll taxes
- Failure to abate or reduce tax penalties
You Have Rights
First and foremost, you have the right to professional representation to help you. It’s a complex process that usually requires representation by experienced professionals that are knowledgeable with tax law and IRS procedure. At this level the IRS expects (and usually prefers) to deal with an impartial, knowledgeable representative to settle the matter swiftly and without exposure to the hazards of litigation that may develop should the case be brought to court.
The two most common methods to appeal are the Collection Due Process (CDP) or Equivalent Hearing and Collections Appeals Program (CAP). Under these procedures, you have the right to an administrative hearing with an independent IRS representative.
Collections Due Process (CDP) Hearing
The Collections Due Process (CDP) Hearing is a request to have your case administratively reviewed – usually because you disagree with findings or collections actions that are proposed by the IRS. It is your chance to have your case independently review by a new, totally different person, not associated with your cases at the IRS. Your request for a CDP hearing must be postmarked by the date indicated in the Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320 (lien notice) or within 30 days after the date of the Notice of Levy and Notice of Your Right to a Hearing (levy notice) or Notice of Your Right to a Hearing After an Actual Levy.
The Equivalent Hearing
Missed the deadline? If you still want a hearing with the IRS Office of Appeals after the deadline for requesting a CDP hearing has passed, there’s still hope. You can request an Equivalent Hearing (EH) and receive many of the same benefits despite the fact that you missed the deadline.