Appealing IRS Collection Actions

  • Robert S. Thomas,
  •   Taxation
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Appealing IRS Collection Actions

The IRS has incredible powers to get your attention if you are delinquent in paying your tax bill. These include a federal tax lien, a levy, or a seizure of property. These actions are disruptive, inescapable, and can put your life on hold. If you find yourself the recipient of an IRS tax collection action, you need a lawyer. The IRS will not lift or rescind any of its collection actions unless you take affirmative steps to resolve your tax obligation. An attorney can help you take the measures to appeal the IRS’s actions and move you forward.

Types of Collections Appeals

There are numerous types of appeals processes available to taxpayers, depending on the kind of collection action in place. As with most government programs, each has its own acronym.

Offer in Compromise (OIC). This is an agreement reached between the IRS and the taxpayer in which tax obligation is settled for as much as the taxpayer can pay. This is a risky appeal because a taxpayer must disclose all of their assets to the IRS to prove that they cannot pay their full tax obligation. If the IRS rejects the offer, the taxpayer has just provided the IRS with a complete list of assets for them to go after.

The Collection Appeal Request (CAP). This is a common appeal from a federal tax lien, a levy, a government seizure, or collection following the breakdown of an installation agreement. The office of appeals will consider a collection appeal request form, along with a detailed explanation for your appeal and supporting documents. This process generally has a quicker resolution and also allows the taxpayer to get a temporary stay on collection activity. However, a CAP is binding, so a taxpayer does not have further recourse if the appeal is denied.

Collection Due Process (CDP). This is a more time-sensitive appeal, as it must be filed within thirty days of receiving a notice of a federal lien or notice of a federal levy. A Request for Due Process or Equivalent Hearing must be filed in which you explain why you do not believe that you are responsible for the tax obligation, or that you are seeking some sort of settlement option. An advantage to this is that if you are unsuccessful with a CDP, you still have the option of relief from a tax court.

IRS tax collections are serious business and are time-sensitive. The longer you wait, the worse it can get. If you are the subject of an IRS collection, call us immediately. I have a master of law degree in taxation and have handled complex tax cases for decades. You need a plan to address your tax issues, and my legal team will put one together for you so that you can move forward. Contact the Law Offices of Robert S. Thomas by telephone at 847-392-5893 or visit our website.

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