Appeals

Collection Appeal Rights

IRC 6330 gives you the right to appeal before the proposed levy action and appeal rights under the Collection Appeals Program (CAP). IRC 7122(e) gives you the right to appeal the IRS’s rejection of installment agreement requests. You also have the right to appeal proposed terminations of installment agreements and actual terminations of installment agreements. IRC 7123 gives you rights to mediation and arbitration before Appeals that the IRS provides through CAP. Under CAP, you have the right to appeals proposed or actual lien, levy, or seizure actions, rejected or terminated installment agreements, rejected offers in compromise, proposed trust fund recovery penalties, and denials of requests to abate penalties.

i. The specific appeal rights include:

Income Tax Appeal Procedure

[click to enlarge]

[click to enlarge]
Income Tax Appeal Procedure [PDF]

1. The Collection Due Process (CDP) appeal rights.

2. IRC 6320 gives you the right to appeal the filing of a Notice of Federal Tax Lien.

3. IRC 6330 gives you the right to appeal before the proposed levy action and appeal rights under the Collection Appeals Program (CAP).

4. IRC 7122(e) gives you the right to appeal the IRS’s rejection of installment agreement requests.

5. You also have the right to appeal proposed terminations of installment agreements and actual terminations of installment agreements.

6. IRC 7123 gives you rights to mediation and arbitration before Appeals that the IRS provides through CAP. Under CAP, you have the right to appeals proposed or actual lien, levy, or seizure actions, rejected or terminated installment agreements, rejected offers in compromise, proposed trust fund recovery penalties, and denials of requests to abate penalties.

7. You have additional appeal rights, including those related to assessment of the trust fund recovery penalty, offers in compromise, abatement of penalty assessments due to reasonable cause and jeopardy levies.

8. Taxpayers rights, include those related to assessment of the trust fund recovery penalty, offers in compromise, abatement of penalty assessments due to reasonable cause, and jeopardy levies.

1. In addition to the Collection Due Process (CDP) hearing rights discussed above, taxpayers can also appeal certain collection actions under the Collection Appeals Program (CAP). If you are seeking to file a CAP appeal and also entitled to a CDP hearing, there is a strict time frame for requesting a CDP hearing. Document the discussion in the case history. The decision to request a CDP hearing or a CAP appeal belongs to you. If an issue is raised and decided in a CAP appeal and you participated meaningfully, it may not be raised in a CDP hearing, unless new information is presented. The determination about whether an issue raised in a CAP appeal can be raised in a CDP hearing will be made by Appeals. A CAP appeal can provide an expedited review of a specific collection action that may satisfactorily address your concern. The CDP hearing provides for further judicial review and retained jurisdiction.

2. Taxpayers can appeal under CAP when you are told by an IRS employee that a lien, levy or seizure action will be or has been taken, or that an installment agreement is rejected or terminated. Your right to appeal under CAP is connected to the specific planned or actual collection action.

3. The time frame for filing a CAP appeal for an installment agreement is as follows:

A. For rejected installment agreements-you have 30 days to request an appeal after the proposed installment agreement is rejected. Levy is prohibited during this time and is systemically stayed 15 additional days to allow for mailing and receipt of the request. If you timely appeal, levy continues to be prohibited until the appeal is closed.

B. For defaulted/proposed termination of an installment agreement-you have 30 days to request an appeal after termination of an installment agreement is proposed. Levy is prohibited during this time and is systemically stayed 15 additional days to allow for mailing and receipt of the request. If you timely appeal, levy continues to be prohibited until the appeal is closed.

C. For terminated installment agreements-you have 30 days to request an appeal after an installment agreement is terminated. Levy is prohibited during this time and is systemically stayed 15 additional days to allow for mailing and receipt of the request. If you timely appeal, levy continues to be prohibited until the appeal is closed. If you appeal prior to termination under (b) above, you may not appeal the decision again once the termination takes effect.

4. Under CAP, you can appeal before or after a Notice of Federal Tax Lien (NFTL) is filed. You can appeal denied requests to withdraw a NFTL filing and denied discharges, subordinations, and non-attachments of lien. Third party claims to property and alter ego and nominee liens are also appealable under CAP. If a NFTL is filed, you may have appeal rights under CDP.

5. Under CAP, you can appeal before or after a levy is issued. You may also have appeal rights under CDP.

6. Once a seizure action is taken, you have 10 business days to appeal under CAP from the date the Notice of Seizure is provided to you, or left at your usual abode or place of business. Notice of your rights must be included with the Notice of Seizure.

The Appeals Determination

1. Appeals reviews the case based on law, regulations, policy, and procedures, considering all the facts and circumstances.

2. Judgment is likely to be an issue on these types of cases, although they can also involve legal or procedural issues. Appeals may reverse Collection’s action if evaluation of your history and current facts and circumstances reveal a more appropriate solution.

3. We will receive a decision as soon as possible within a five-business-day time frame. Appeals will contact Collection immediately upon making a decision. The decision may be given orally followed by a written closing letter or through faxing of the appropriate decision documents.

4. If Appeals has sustained the collection action, enforcement action may resume upon receipt of the decision, unless otherwise prohibited. For example, if the 30-day time period after rejection of an installment agreement is still running, levy action is prohibited during that time. Otherwise, the decision made by Appeals will be implemented. Appeals will give the closing letter to you with a copy to Collection. The closing letter should clearly outline any agreement reached with you.

5. Decisions by Appeals are binding on you and Collection. Collection will take the actions directed by the Appeals decision. However, if you default on the decision directed by Appeals, Collection is released from the terms of the agreement. You may not appeal the same issue under CAP once Appeals has decided the issue on the same factual basis, e.g., a subsequent levy on the same asset.

After the Appeals Determination

1. After Appeals makes its determination in a CDP hearing, you may, within 30 days of the date of the determination letter, petition the Tax Court.

2. To allow time to be notified of any court petitions, Appeals will hold cases subject to Tax Court review for an additional 30 days (60 days after issuance of the Notice of Determination). If you reach an agreement with Appeals, you waive the right to go to court and the suspension of levy action and the right to judicial review. A Determination Notice will be prepared and the determination is final and the case can be returned to Collection. Then you may raise collection alternatives with Collection.

If you or you business have been contacted by the IRS and if you are looking for a tax lawyer to compromise, negotiate, or effectively deal with the IRS, or if you or your business is in need of tax litigation, or tax defense, we, the Michael Ablan Law Firm can help you. With an experienced and aggressive yet honest, trustworthy and friendly legal team consisting of a lawyer with 35 years of experience, specialized paralegals, and a tax accountant, the Michael Ablan Law Firm in La Crosse, WI can help you. We also have offices in La Crescent, Minnesota and Hayward, Wisconsin. Contact us for a free consultation. Our expert legal services are available to you anywhere in the State of Wisconsin including but not limited to the counties of La Crosse, Trempealeau, Monroe, Crawford, Vernon, Grant, Jackson or any other county in Wisconsin or in the state of Minnesota, including all counties surrounding La Crescent, MN, such as Houston and Winona and any other county.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, if any U.S. federal tax advice contained in this communication, (including any attachments) is not intended or written to be relied upon or used, and cannot be relied upon or used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction of matter addressed herein.