Knowing when and how to appeal, both with the IRS and state taxing authorities, can sometimes mean the difference between a phenomenal result and disaster. When it comes to appeals, there is simply no substitute for having an experienced tax resolution attorney at your side. Our tax attorneys have extensive experience utilizing all available avenues of appeal within the IRS Collection Division and, in certain cases, can take advantage of the appeals system to effectuate life-changing results.
Collection Due Process/Equivalent Hearing Appeals
Collection Due Process (“CDP”) Appeals—derived from the constitutional right to due process–are among the most powerful appeals available to taxpayers who are in collections with the IRS.Benefits of a timely and properly filed CDP:
- With few exceptions, the IRS may not levy a taxpayer on delinquent taxes that were included in the appeal while the appeal is pending and for 30 days subsequent to the issuance of an unfavorable determination letter. This can effectively prevent the IRS from levying for 5-8 months or longer.
- At the CDP hearing, a Settlement Officer has broad authority to approve a variety of different tax resolution programs.
- It “takes the case away” from the existing collection officer or ACS, which can be extremely helpful if that person is unreasonable or uncooperative.
- If the taxpayer doesn’t like the outcome of the appeal, they have the right to take the issue to United States Tax Court.
There is also a very similar appeal called an Equivalent Due Process Appeal (“EDP”), which can sometimes be filed if the taxpayer misses the deadline to file for a CDP.
Collection Appeals Program
The Collection Appeals program or “CAP” can be used to appeal a wide variety of decisions made by IRS tax collectors including:
- Notice of Federal Tax Lien
- Notice of Levy
- Notice of Seizure
- Denial or Termination of Installment Agreement
Penalty Abatement, Offer in Compromise, and Trust Fund Recovery Appeals
Our attorneys can often use these appeals to:
- Get penalties removed after the IRS denies a request for abatement of penalties;
- Secure approval of a rejected Offer in Compromise or secure a far lower settlement amount than the IRS was willing to approve;
- Exonerate individuals who were wrongfully proposed assertion of the Trust Fund Recovery Penalty.