There are two key methods to appealing an IRS collection. The first is a Collection Due Process hearing, and the second is a Compliance Assurance Process hearing.
- Collection Due Process: This appeal is time-sensitive and must be filed within 30 days of the final notice if the IRS’ intent to levy. This allows the IRS time to review the case and then it is transferred from the collection division to the IRS. CDP appeals are effective.
- Compliance Assurance Process: If you failed to file your CDP appeal within the 30 days, you have the right to file a CAP appeal. This is rarely used by tax attorneys. However, if the IRS has not yet filed a wage garnishment or tax levy against you, we will immediately file a CAP appeal. This takes the case from the collections division and places it with a technical advisor. This is important because technical advisors are experience IRS agents and usually work to resolve the tax issue. A CAP appeal prevents the IRS from filing wage garnishments and levies against a taxpayer’s social security, income or payroll money.
- Offers in Compromise: An agreement between the IRS and taxpayer that settles the tax debt for less than the full amount due.
- IRS Installment Payment Plan: An agreement between the IRS and the taxpayer that the taxpayer will pay the IRS each month a pre-determined amount of money.