Federal Tax Appeals

COLLECTION DUE PROCESS (CDP) HEARINGS

You may appeal many IRS collection actions to the IRS Office of Appeals (Appeals). The two main procedures are Collection Due Process (CDP) and Collection Appeals Program (CAP). The Collection Due Process (CDP) is available if you receive one of the following notices:

• Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320.

• 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.

When you receive one of the above notices, you generally have 30 days to file a request for a CDP Hearing. Oftentimes, it is possible to obtain a hearing even after the 30-day period has lapsed. After the hearing, the Settlement Officer will issue a written determination letter, which you can further dispute in tax court. The CDP process is very helpful because it lets the taxpayer propose alternatives to collection.

COLLECTION APPEALS PROGRAM (CAP)

The Collection Appeals Program (or CAP) somewhat resembles the CDP process with some key differences. For example, the CAP program doesn't cover certain types of appeals, including the Trust Fund Recovery Penalty. In addition, you cannot challenge a Settlement Officer's determination on a CAP case in Tax Court. On the upside, however, CAP appeals must be resolved within 5 days. You are essentially trading expediency at the risk of not being able to challenge an adverse determination.

APPLICATION FOR TAXPAYER ASSISTANCE ORDER

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes that will prevent those problems in the future. In certain cases where other forms of appeal have not worked, it is possible to obtain immediate relief through the intervention of a Local Taxpayer Advocate.

An Application for assistance by a Local Taxpayer Advocate is normally referred to as a request for a Taxpayer Assistance Order. The TAS Advocate determines if your case presents a significant hardship and then recommends what action should be taken to relieve the hardship. In certain situations, enforcement action may be suspended while your case is being reviewed. The Taxpayer Advocate resolves the majority of cases administratively. Even when hardship is not a factor, the Advocate is often able to help resolve the taxpayer's problem.