IRS Collection Appeals
Challenging the IRS: Your Pathway to Collection Appeals
IRS Trust Fund Penalty Solutions
Appeal your Notice of Federal Tax Lien, Levy or Installment Agreement.
THERE ARE THREE BASIC IRS COLLECTION APPEALS PROGRAMS:
- Collection Due Process
- The Offer in Compromise
- The Trust-Fund Recovery Penalty Section 6672
NOTE: If you disagree with the Appeals decision, you are precluded from taking your case to court.
The Collection Due Process is available to individuals and business who have received one of the following notices:
- The Notice of the Federal Tax Lien
- Notice of Seizure
- Notice of Federal Tax Levy, 668A and 666W
- Denial or termination of an installment or part payment agreement.
CDP Procedure
- You have 30 days to request a hearing to preserve your right to go to Court.
- Complete IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing
- It is important you identify all your reasons for your disagreements.
- The completed Form 12153 should be sent to the same address that is shown on your Lien or Levy Notice.
- If your request is not received within 30 days, you are still entitled to an Appeals hearing. However, if you still disagree with the Appeals determination you cannot go to Court.
IRS Collection Appeals
THE IRS PROCEDURE FOR APPEALS ON A TELEPHONE CALL OR NOTICE
If you were contacted by the IRS through a phone call or written notice and you disagree with their decision, you have the right to appeal. In your explanation, make sure to include the specific reasons why you disagree and provide a reasonable solution. The collection manager in the IRS office will hear your case before the appeal can move forward, in an effort to resolve the issue efficiently. Keep in mind that any proposed solution should be rational and realistic.
THE IRS PROCEDURE FOR APPEALS IF YOUR CASE IS WITH A FIELD REVENUE OFFICER
If your situation proceeds through the Collection Appeals Process, be aware that the Appeals decision is final, and court action cannot be pursued. In most instances, seeking court intervention would be both futile and financially imprudent. Your next step should be to contact the revenue officer handling your case and express your intent to appeal the decision that has been made. It’s essential to speak with the manager to attempt a resolution before any appeals hearing with the Internal Revenue Service. Most resolutions are achieved in this meeting, and proceeding beyond this stage is often unproductive, as appeal decisions typically align with the manager’s perspective. If the Revenue Officer has acted unreasonably, you may want to speak with the Revenue Officer Group Manager.
The formal process requires you to complete Form 9423, known as the Collections Appeals Request. It’s crucial to understand that you have a two-day window from your conference with the Group Manager to submit the 9423 to the Revenue Officer managing the case.
THE OFFER IN COMPROMISE APPEAL, THE 656 OFFER FORM
The guidelines for filing an Offer in Compromise Appeal are provided on the rejection notice that you receive after your unsuccessful attempt to settle your tax debt. This can be due to either doubt to liability, doubt to collect ability, or effective tax administration. You must follow the format specified on the rejection letter while filing the appeal and send it back to the appeals office mentioned on the offer rejection letter in certified mail. It is crucial to send the appeal in a timely manner, as any delay can lead to its rejection. Therefore, make sure to send the appeal back promptly to avoid any setbacks.
THE TRUST FUND RECOVERY APPEAL
Taxpayers will receive a notice from the IRS indicating that they are “found liable” for the trust fund recovery penalty. If taxpayers disagree with the findings, the notice will include instructions on how to file an appeal following specific format and criteria for factual content. The appeal must be submitted to the IRS within the time frame specified in the notice.
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