Understanding IRS Collection Appeal Rights with Tax Resolution 1st

 

Understanding IRS Collection Appeal Rights with Tax Resolution 1st

When dealing with significant tax debt, navigating IRS collection actions can feel overwhelming. Tax Resolution 1st, operated by an Enrolled Agent, specializes in national tax resolution services for taxpayers owing the IRS more than $10,000. Understanding your rights to challenge IRS collection actions can be a crucial first step in resolving your tax issues.

What Are IRS Collection Appeal Rights?

The IRS offers taxpayers the ability to appeal collection actions through two main programs: Collection Due Process (CDP) and the Collection Appeals Program (CAP). Both programs provide avenues to contest IRS actions such as liens, levies, and installment agreement issues, but they differ in scope and process.

Collection Due Process (CDP)

CDP hearings are your right when the IRS issues specific notices, including:

  • Notice of Federal Tax Lien
  • Final Notice of Intent to Levy
  • Notice of Levy on State Tax Refund
  • Jeopardy Levy

If you receive any of these notices, you must request a hearing within 30 days to preserve your right to judicial review. During the CDP hearing, you can propose alternatives like installment agreements, offers in compromise, or dispute the tax liability if you haven't had the opportunity before.

Key Benefits of CDP:

  • Suspension of IRS collection activity during the hearing process.
  • Right to petition the U.S. Tax Court if you disagree with the hearing determination.

Collection Appeals Program (CAP)

CAP offers a quicker resolution for a broader range of collection actions, including:

  • Before or after the IRS files a lien or levy.
  • Installment agreement rejections, terminations, or modifications.
  • Property seizures.

Unlike CDP, CAP decisions are final and cannot be taken to court. This program is ideal for resolving disputes without extended litigation.

How to File an Appeal

  1. For CDP Hearings: Submit Form 12153, "Request for a Collection Due Process or Equivalent Hearing," within the timeframe specified in the IRS notice.
  2. For CAP Appeals: File Form 9423, "Collection Appeal Request," or make a verbal appeal if applicable.

In both cases, you must clearly explain your disagreement and propose a solution.

Why Work with Tax Resolution 1st?

Challenging IRS actions requires expertise to navigate the complex rules and deadlines effectively. Tax Resolution 1st provides experienced representation, helping troubled taxpayers achieve favorable outcomes in their disputes with the IRS. With the right strategies, you can protect your assets and work toward resolving your tax debt.

For assistance with your IRS appeal or other tax resolution needs, contact Tax Resolution 1st at taxresolution1st.com/contact.

Conclusion

Understanding your IRS collection appeal rights can empower you to take control of your tax situation. Whether you need a CDP hearing, CAP appeal, or representation in negotiating with the IRS, Tax Resolution 1st is here to guide you every step of the way.  taxresolution1st.com/contact


Location: United States

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