FAQ: IRS Collection Appeals

When you receive a notice from the IRS informing you of an outstanding tax liability, their intent to file a lien, or to levy or seize your assets, it can be frightening. You may not know what to do or where you can turn. So, we’ve answered some of the most common questions about the IRS collections appeals process that we hear from our clients:

I got a letter from the IRS telling me they intend to file a lien. What do I do next? 

If the IRS threatens to place a lien on your property or levy your assets, you can appeal using the Collection Appeals Program. In your appeal, you’ll note the action you’re appealing, why you’re appealing, and your requested resolution. However, the CAP process is binding on you and the IRS. You won’t be able to appeal a CAP decision in court or challenge the amount of your liability.

You can use the CAP process if:

·      The IRS threatens to levy or seize your property,

·      The IRS levies or seizes your property,

·      The IRS files a lien against your property,

·      The IRS rejects your offer in compromise, a type of settlement offer,

·      The IRS changes your installment agreement or rejects it,

·      The IRS rejects your request that they return levied or seized property,

·      The IRS intends to seek a Trust Fund Recovery penalty against you or rejects your claim for one,

·      The IRS rejects your request to waive a penalty.

The IRS says they’ve filed a lien or a levy against me. Can I appeal?

If the IRS sends you a letter informing you they’ve filed a lien against your property or seized your assets, you can appeal by requesting a Collection Due Process (CDP) hearing. But you must appeal within the time noted in your letter from the IRS, usually within 30 days. While you can utilize the Collections Appeals Program earlier in the collections process, a CDP hearing still has an important benefit. Unlike CAP decisions, you can appeal a CDP hearing decision in the U.S. Tax Court.

Who should I call for help with the IRS?

Facing the collections process from the IRS can be confusing and overwhelming. Fortunately, Gabaie & Associates, LLC can help. You have the right to appeal, and we can guide you through the process. At Gabaie & Associates, LLC, we represent clients nationwide in tax disputes with the IRS, and we can help you avoid problems in the future. Call us at 410-358-1500 or contact us online for a free consultation.