Collection Due Process (CDP)

Collection Due Process (CDP)

CDP procedures are available to you if you've received any one of the following notices:

• Notice of Federal Tax Lien
• Notice of Intent to Levy

CDP Procedure
You have 30 days to request a hearing to preserve your right to go to Court.
Complete 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.

Dealing with the IRS can be very difficult, why not start here and let the expers help you out.

Collections Appeals Program (CAP)

Do you want to go through a Collections Appeals Program or CAP Hearing?

If you choose to go through this CAP process, then you cannot go to Court on the Appeals' decision.

CAP procedures are available to you if you've received any one of the following notices:
Notice of Federal Tax Lien ,
Notice of Levy ,
Notice of Seizure ,
Denial or Termination of Installment Agreement

CAP Procedures

If your only collection contact has been a notice or telephone call:
Call the IRS telephone number shown on your notice
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to first discuss your case with a Collections manager.

If you have been contacted by a Revenue Officer:
Call the Revenue Office you've been dealing with
Explain why you disagree and that you want to appeal the decision
Be prepared to offer a solution
Before you can come to Appeals you will need to discuss your case with a Collections manager.
Complete Form 9423, Collection Appeals Request
You have 2 days from your conference with the Collections manager to submit Form 9423 to the Revenue Officer.

Call Effectur to help anser your questions about taxes you owe or how to deal with the Appeals Process and the IRS.

IRS Collections and Your Options for Appeal

Before you prepare a request for Appeals, you need to decide if Appeals is the place for you. Select the appropriate appeal procedure for specific instructions on preparing your request for Appeals. If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.




Collection Appeals Program (CAP)Collection Appeals Program (CAP) is generally quick and available for a broad range of collection actions. However, you can’t go to court if you disagree with the Appeals decision.


Collection Due Process (CDP)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 (Lien Notice), a Final Notice - Notice of Intent to Levy and Notice of Your Right to A Hearing, a Notice of Jeopardy Levy and Right of Appeal, a Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing (Levy Notices), and a Notice of Levy and Notice of Your Right to a Hearing. If you disagree with the Appeals decision, you may be able to take your case to court.


Offer in Compromise (OIC)An Offer in Compromise (OIC) is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed.


Trust Fund Recovery Penalty (TFRP)If you are a person responsible for withholding, accounting for, or depositing or paying specified taxes including non-resident alien (NRA) withholding and employment taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the unpaid trust fund tax, plus interest. A responsible person for this purpose can be an owner or officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. A trustee or agent with authority over the funds of the business can also be held responsible for the penalty.

There are many options that the taxpayer has to resolve their tax issues. This can all be very confusing and overwhelming. Think of calling a tax professional to help you out in this very hard time. The can give you advice and answer many of your questions.

IRS Appeals Office Defined

The mission of Appeals is to resolve tax controversies, without having to go to court on a basis which is fair and impartial to both the government and the taxpayer.

Independence from other IRS offices is critical for Appeals to accomplish this important mission.



In the last few years, concerns have surfaced that the IRS' modernized structure and processes did not provide the level of independence intended by the Internal Revenue Service (IRS)Restructuring and Reform Act of 1998 (RRA 98).


At the request of Appeals, the Treasury Inspector General for Tax Administration (TIGTA) completed a thorough audit of the independence of Appeals. This audit looked internally at the processes, quality measures, and customer satisfaction survey results. Additionally, TIGTA looked outside of Appeals and interviewed numerous tax professionals about their experiences around the independence of Appeals.


The findings reflected in the final report from TIGTA indicated a strong support of Appeals’ independence. Representatives from the American Bar Association, the American Institute of Certified Public Accountants, the National Association of Enrolled Agents, and the National Society of Accountants advised TIGTA they believe the independence of Appeals is generally very high.

The IRS has done a good job in the way they have structured their Appeals processes. If you are confuesed or feel overwhelmed about the whoe appeals issue, find a resolution firm that can help you get through all the "red tape". It is always best to let a prefessional handle your issued with the IRS.

What Can You Expect from your IRS Appeals?

From the IRS website

Appeals is independent of any other IRS office and provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis for both the taxpayer and the government.


An Appeals or Settlement Officer will review the strengths and weaknesses of the issues in your case and give them a fresh look. Appeals conferences are conducted in an informal manner, by correspondence, telephone or in person. Most differences are settled in these appeals without expensive and time-consuming court trials. Appeals will consider any reason you have for disagreeing, except for moral, religious, political, constitutional, conscientious objection, or similar grounds. Our goal is to provide a forum for us to work together to resolve the tax dispute.


IRS Commitments
Explain your appeal rights and the Appeals process
Listen to your concerns, be courteous and professional
Be timely and responsive (See Frequently Asked Questions)
Be fair and impartial
Your Responsibilities
Listen to our explanation of your appeal rights and the Appeals process
Give us a statement as to how you understand the facts and the law, listing all issues with which you disagree and why.
Give us any additional information or documentation that will be helpful to your case within a reasonable time.
Tell us when and how you think your case should be resolved.
Let us know the best time to contact you.


Frequently Asked Questions
Q. I sent in my appeal request/protest. How long will it be before I hear from the Appeals office?
A. This varies, depending on the type of case you are appealing and the time needed to review the file before sending your case to Appeals. Normally, you can expect to hear from an Appeals employee within 90 days after you file your appeal request.

If more than 90 days have gone by and you still haven’t heard from Appeals, you should contact the office where you sent your appeal request. They can tell you when they forwarded your case to Appeals. If they were delayed in sending your case, you would not expect to hear from Appeals until at least 90 days from that date. If more than 90 days has gone by and there is no known delay, ask that office to contact Appeals to get a time frame for when Appeals will contact you. You can also contact an Appeals Account Resolution Specialist (AARS) in Fresno Appeals at 559-456-5931. After researching the Appeals data base, they can tell you if your case has been assigned to an Appeals employee, their name and number and you can contact that employee directly.


Q. How long will it take to resolve my case once it is received in Appeals?
A. It depends on the facts and circumstances. It could take anywhere from 90 days to a year. Appeals continues to work towards reducing the time to resolve cases. Your Appeals Officer or Settlement Officer can provide you with a more specific timeframe.



Dealing with the IRS can be a daunting task. There are many details that can be easily overlooked. Self representation is no representation. Find someone who knows how to resolve you IRS issues.

Preparing for your Hearing

Examination

Before you prepare a request for Appeals, you need to decide if Appeals is the place for you. If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.

Preparing A Request For Appeals
Small Case Request
You prepare a small case request instead of a written protest if the total amount for any one tax period is $25,000 or less.
Send a letter requesting Appeals consideration.
Indicate the changes you do not agree with and the reason you don’t agree.
For specific guidance in preparing a small case request/protest, refer to Form 12203, Request for Appeals Review.

Formal Written Protest:

Prepare a formal written protest for all of the following situations:
If the total amount for any one tax period is greater than $25,000.
Employee plan and exempt organization cases without regard to the dollar amount at issue.
Partnership and S corporation cases without regard to the dollar amount at issue.
To prepare a formal written request for Appeals you must:
Include your name, address, social security number, and daytime telephone number.
Include a statement that you want to appeal the IRS findings to the Appeals office.
Include a copy of the letter showing the proposed changes and findings you don’t agree with (or the date and symbols from the letter).
Indicate the tax periods or years involved.
List all the changes you do not agree with and why you don’t agree.
State the facts supporting your position on any issue that you do not agree with.
Cite the law or authority, if any, on which you are relying.
Sign the written protest under the penalties of perjury.

You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS.

Let's determine if an IRS tax appeal is right for you.

Many people who have had an examination by the IRS do not agree with the outcome. You may Appeal the determination.

Appeals is the place for you if:
You received an IRS correspondence explaining you have the right to come to Appeals to dispute an IRS decision.
AND
You do not agree and are not signing an agreement form sent to you.

If you meet the above qualifiers listed above then you may be ready to request an Appeals conference or hearing.

Appeals is not for you if:
Your only concern is that you cannot afford to pay the amount you owe.
The correspondence you received from the IRS was a bill and there was no mention of Appeals.

If you are lost and not sure where to turn next call Effectur and let them help you out today.

Can you appeal your tax dispute with the IRS?

Many of the different departments within IRS are responsible for making decisions concerning the application of tax law to various taxpayer issues. In some cases, agreement on these decisions, or determinations, cannot be reached. In other words, the taxpayer does not agree with the determination.

This is where Appeals comes in. Appeals is independent of any other IRS office and serves as an informal administrative forum for any taxpayer who disagrees with an IRS determination. Appeals provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis for both the taxpayer and the government. The mission of Appeals is to settle tax disagreements without having to go to the Courts and a formal trial.

As with all dealings with the IRS it is a goos idea to have someone representing you. If you need to ask some questions and find out more, get in touch with a firm who can help you.