The IRS has an assortment of provisions in place to protect a taxpayer’s rights. One of those rights that an individual is free to exercise is to request an appeal. Here are four important questions I may need to ask about the IRS appeals process.
What can Appeals do for me?
According to the IRS web site, Appeals “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.”
What actions can I appeal?
Most decisions of the IRS can be appealed. These include the proposed assessment of taxes and the collection of the tax.
There are two programs that the IRS uses to administer the appeals process. They are a Collection Due Process (CDP) hearing and the Collection Appeals Program (CAP). See the articles linked below for an explanation of these two programs.
Through these programs, a taxpayer can request to appeal the intent of the IRS to take collection actions (such as a levy or the filing of a lien), the filing of a Notice of Federal Tax Lien or the issuance of a Notice of Levy on wages or bank accounts, a notice of a defaulted Installment Agreement, or a notice that the IRS has rejected my request to make installment payments.
Other appealable actions include property seizures, a denial of request to have property discharged from a lien, a denial of request that the IRS subordinate a lien, and a denial of request to have a lien withdrawn.
I can also request the appeal of the assessment of a Trust Fund Recovery Penalty, the rejection of my Offer in Compromise, the denial to have penalties abated, and disallowed audit reconsideration claims, although all these appeals are handled separately from the above CDP and CAP programs.
Do I qualify for an appeal?
Yes, if I have a notice from the IRS that outlines my appeal rights. All appeal rights are provided in writing and accompany an IRS notice advising of one of the actions discussed above. If I only have a tax bill from the IRS, and there is no mention of the option for an appeal, then the appeal program is not an option for me.
If my concern solely rests with an inability to make payment, then an appeal is not appropriate. However, contact the IRS and they will review eligibility to have the debt deferred due to financial hardship.
How do I request an appeal?
If using the CDP program to appeal one of the actions reviewed above, request an appeal by filling out and submitting Form 12153, Request for a Due Process Appeal. If applicable, this form will accompany the notice. The IRS generally gives 30 days to request this.
If requesting an appeal under the CAP program, use Form 9423, Collection Appeals Request. Alternatively, request a CAP appeal of one of the above actions over the phone, or, if the IRS says the account has been assigned to a Revenue Officer, by speaking directly to him or her.
Other appeal options are outlined through the branch that oversees the program, such as the appeal of a denial of an Offer in Compromise.
More from this Contributor:
What is an IRS Collection Due Process appeal?
What is the IRS Collection Appeal Program?
How to appeal an IRS notice