Appeal your Notice of Federal Tax Lien, Levy or Installment Agreement.

There are three basic IRS Collection Appeals Programs:

  1. Collection Due Process
  2. The Offer in Compromise
  3. The Trust-Fund Recovery Penalty Section 6672

NOTE: If you disagree with the Appeals decision, you are precluded from taking your case to court.

The Collection Due Process is available to individuals and business who have received one of the following notices:

  1. The Notice of the Federal Tax Lien
  2. Notice of Seizure
  3. Notice of Federal Tax Levy, 668A and 666W
  4. Denial or termination of an installment or part payment agreement.

CDP Procedure

  • You have 30 days to request a hearing to preserve your right to go to Court.
  • Complete IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing
    • It is important you identify all your reasons for your disagreements.
  • The completed Form 12153 should be sent to the same address that is shown on your Lien or Levy Notice.
  • If your request is not received within 30 days, you are still entitled to an Appeals hearing. However, if you still disagree with the Appeals determination you cannot go to Court.

The IRS PROCEDURE FOR APPEALS on a telephone call or notice

If your IRS contact was by a telephone call or a notice, explain why you disagree and that you want to appeal the decision. Explain why you disagree in detail, and most importantly, try and offer a reasonable solution. Before any appeals are heard, the collection manager in that office will hear the case, then try to stop the appeal process. But remember, this all must be reasonable.

The IRS procedure for appeals if your case is with a field Revenue Officer

If your case goes through this Collection Appeals Process, then you cannot go to court on the Appeals decision, all matters are final. Most of these case do not warrant court action and the result would be a waste of time and money. You should next call the revenue officer you have been dealing with and let them know you wish to appeal any decision which has been made. Once again, before coming to any appeals hearing with the Internal Revenue Service you will have to speak to the manager to try and resolve your case. It is in this meeting where most results can be achieved. Usually all appeals decisions will agree with the manager, and taking it past this point is a waste of time. You usually want to go to the Revenue Officer Group Manager, especially if the Revenue Officer has been unreasonable.

You will have to complete form 9423, the actual Collections Appeals Request. Finally, know you have two days from your conference with the Group Manager to submit the 9423 to the Revenue Officer working the case.

The Offer in Compromise appeal, the 656 offer form

The instructions for the Offer in Compromise Appeal is found on the rejection notice of your failed attempt for an offer in compromise. Either doubt to liability, doubt to collect ability or effective tax administration. You are to follow the format found on the rejection letter. Make sure the appeal is sent back certified mail to the place of appeals listed on the offer rejection letter that comes to you or your representative. Also make sure this goes out in a timely matter. If not received timely, your appeal will be denied.

The Trust Fund Recovery Appeal

The IRS will send the taxpayers a notice that they have been “found liable” for the trust fund recovery penalty. Instructions will be found in the letter in case you disagree with the findings. There is a certain format to be followed and certain criteria within that appeal, of facts it must contain. It must be received by the IRS within the allotted period of time on the letter.

Michael D. Sullivan, Former IRS Agent are masters of the Appeals Process.
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