IRS Collection Appeal Program

If you have to protest against collection actions initiated by the Internal Revenue Service, it’s very important to know your rights.  Usually via the Collection Appeals Program or Collection Due Process you can, by law, appeal a number of IRS decisions.

The Collection Appeals Program (CAP) is a course of action that allows a taxpayer to appeal a Federal Tax Lien Notice, IRS Notice of Levy, property seizure, Installment Agreement termination, or rejection of proposed Installment Agreement. On the other hand, there are restrictions. CAP won't, for example, permit negotiations regarding the existence of a taxpayer's liability, nor does it allow you to go to court if you don’t like the CAP results. You should also consider the Collection Due Process..

IRS Form 9423, Collection Appeal Request, is a document that you can file to request Appeals consideration if an agreement cannot be reached with the IRS worker assigned to your case, or with the Collection Group Manager. This document will be reviewed by the IRS Office of Appeals, which operates independently from IRS Collections.

If you wish, you can speak for yourself at all IRS proceedings. Though, it is undeniable that using the services of a tax professional that specializes in tax debt help, such as an enrolled agent or a tax attorney will enhance the likelihood of the IRS accepting a proposal to resolve your tax debt. You may also authorize your tax representative to operate in your absence at the Appeals hearing. To do this, complete Form 2848 - the IRS Power of Attorney and Declaration of Representative..

If you have received an IRS intent to file Federal Tax Levy or Lien or have had a Lien/Levy previously filed, you can use the CAP to appeal this procedure. It's also possible to file a CAP request to appeal seizure of property, unless the property has already been sold.

If you filed a payment plan or Installment Agreement application to the IRS, and they denied it, you may also submit an appeal to object this verdict. Though, your request must be received by the IRS within thirty days from the date on the IRS rejection letter. An IRS decision to terminate an existing Installment Agreement may also be appealed.

The IRS can't carry out any enforcement action for a particular tax period so long as the taxpayer's Appeal request for the same period is being examined by the Office of Appeals; this assumes that it was filed and received on time. Hence, it is very important to have a copy of your submitted request and verification that it was delivered to the IRS.

The information you provide to the Office of Appeals needs to be accurate - make sure of this. If the Office of Appeals decides in your favor, the IRS must comply, unless they find that the information provided was incorrect.

If none of the above collection procedures matches your current circumstances, then bear in mind  that you can also appeal a rejection of an Offer in Compromise, a request for Penalty Abatement, proposed Trust Fund Recovery Penalty, or denied Trust Fund Recovery Penalty Claim. This is detailed in IRS Publication 1660.

It is a must to deal with unpaid tax to avoid any troubles that it could bring. You can get the best information that can help you in resolving it by visiting http://www.2020taxdebthelp.com.

Owe Taxes? What Happens Next?

The issue will become worse if you are not proactive about fixing the problem. The IRS will take particular steps to collect the money, along with added penalty and interest charges.

It all starts with an IRS notice to inform a taxpayer about back taxes that is received in the mail. This correspondence has all the necessary details about the taxes owed and the reason why any extra fee was assessed. It also provides you a certain amount of time to have this problem resolved before accruing additional penalties and interest. This is a good moment to get your tax liability taken care of.

If you ignore the received IRS notice, you might receive a telephone call from IRS Collections or a Revenue Officer. A Revenue Officer can additionally visit you in person at your home to discuss your problem and how you plan to repay the owed taxes. During this meeting the Revenue Officer takes a note of the assets you might have. This provides the IRS an estimate of how much equity you have in your property and whether it is worth selling it to have the taxes paid.

The IRS will also file a lien in order to protect its entitlement to collect the amount that you owe if, for example, you make a decision to sell any of your possessions. Prior to the lien being filed, the IRS needs to issue a Notice of Federal Tax Lien - this provides you a chance to appeal it. However, unless there is a mistake and you do not owe the taxes that the IRS claims you do, filing an appeal in response to this notice will not stop a lien from being filed. It may just slow down the process.

A collection technique the IRS will use is a levy. According to the IRS, a levy is a "legal seizure of your property to satisfy your tax debt". There are many different kinds of levies. A bank levy is a process when a taxpayer's bank receives a Levy Notice from the IRS detailing a demand to send all monies available on your accounts to the Internal Revenue Service.

Fortunately, it's not quite as simple as that. You will receive advance warning of a levy and thirty days to appeal it or resolve your back taxes situation before the levy is issued. This will take the form of an IRS Final Notice of Intent to Levy. It’s generally a sensible idea to appeal this right away. The IRS will then assign an Appeals Officer that will review your case, giving you the opportunity to negotiate a repayment option.

Of course, a bank levy isn't the only type of levy that the IRS has in its collection. One more technique available to the IRS is to issue enforced collection through a Wage Garnishment, where they'll send a letter to your employer, demanding a part of your income to be sent to the IRS. Other methods include a levy on Social Security, a levy on your Accounts Receivable if you have a business, and so on. You should do all you can to solve your tax liability and avoid anything like this occurring, as these are very hard to get removed.

It is generally a lot easier to avoid IRS enforced collection than to undo its harmful effect on your assets. If you are unsure where to start, contact a tax debt expert to talk about your alternatives. Many companies provide free consultation, which also helps you to choose which tax professional to hire if you think you should have someone to represent you in this matter.