How To Appeal an IRS Collection Decision

Many people believe that IRS determinations are set in stone. However, the IRS offers the option to appeal decisions that a taxpayer disagrees with.

If you are facing an IRS collection action that you believe to be unfair or incorrect, you may decide to initiate an appeal. You have a few options, and understanding the process can help you determine how to proceed. 

Learn how to appeal an IRS collection decision from Levy & Associates, Inc. 

Valid Reasons To Appeal an IRS Determination 

Before you initiate an appeal, ensure that you have a sufficient reason for doing so. You might make an appeal request if you disagree with:

• The collection action
• The penalty amount being assessed
• Audit findings
• A tax bill from the IRS

During the IRS appeal process, you will need to provide detailed information about why you disagree with the IRS’s position. Having evidence to back your stance can help bolster the validity of your appeal. 

Types of Appeals for IRS Collection Decisions 

The IRS offers a few ways to appeal an IRS collection decision: 

• The Collection Appeals Program (CAP) is a fast process used to appeal liens, installment agreement rejections or terminations, levies, and other collection actions. You can initiate this process before the IRS sends the final notice of determination, and it usually takes just a few days. 
• Collection Due Process (CDP) is an appeal process available only after the IRS issues certain notices, such as a Notice of Intent to Levy. Your written notice will include information about how to request a hearing with the Office of Appeals. Through CDP, you can suggest alternatives to the IRS action, such as an offer in compromise or installment agreement, or raise defenses to the determination. 

Understanding the IRS Appeals Process

Before appealing an IRS collection decision with the IRS Independent Office of Appeals, the agency prefers that you first try to settle the issue with the individual office that made the determination. This involves submitting a written IRS protest to that office. In some cases, this protest resolves the issue without the need for further action. 

If you would prefer to use the Collection Appeals Program (CAP) to appeal the determination, you can fill out Form 9423 (Collection Appeal Request) and submit it to the office managing your case. The IRS Appeals Office would then schedule a conference to discuss the issue. If the issue remains unresolved, the office will send your case to the IRS Independent Office of Appeals.

You can also submit Form 12153 (Request for Collection Due Process or Equivalent Hearing) to request a Collection Due Process hearing within 30 days of receiving final notice from the IRS. This hearing would allow you to present your case for judicial review and would temporarily halt the collection action. If you miss this deadline, you can still request a CDP Equivalent Hearing within one year of receiving notice, but this would not stop the collection action during the judicial process. 

Seek Assistance Appealing an IRS Collection Decision 

Knowing how to appeal an IRS collection decision can help you determine your next step. While IRS appeals are part of taxpayer rights, the process can feel intimidating. If you disagree with an IRS collection decision, Levy & Associates, Inc. can help you understand your rights and options and represent your case to the IRS if warranted. 

Our team includes tax attorneys, former IRS revenue officers, CPAs, and other professionals who can approach your case with experience and deep knowledge. Contact us today at 800-829-5389 or fill out our contact form to request a consultation.