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Tax Appeals If the IRS is taking collection action against you due to a tax liability, you may have the right to submit a tax appeal to stop the collection action.
What is Tax Appeal? A Tax Appeal can prevent or stop collection actions such as levies, liens, and audits. Understanding the IRS collection process is crucial, as the IRS has the right to pursue various actions to collect owed money, including property seizure.
To provide recourse for taxpayers facing biased or unreasonable actions by the IRS collections department, the IRS allows appeal rights on certain notices and actions. This enables taxpayers to submit a tax appeal and engage an independent IRS office — the Office of Appeals — to review the case facts and make an unbiased determination. The Office of Appeals can place a taxpayer in a resolution if the facts support it.
Types of Appeals The two main types of appeals are Collection Due Process (CDP) and Collection Appeals Program (CAP). The type of appeal available depends on the notice or action pursued by the IRS, but both types allow taxpayers to explain why they disagree with the collection actions. Appeals can be submitted for multiple tax types and periods, but there is a limited time to do so.
How to File an IRS Appeal?Carefully read the IRS notice to know which appeals form to file, as different time frames apply depending on the type of appeal. When an appeal is submitted, collection action is typically halted to allow time for an independent review by the Office of Appeals. However, a hold on collection action is not available in all cases. An Appeals Officer will review the case facts and determine if the collection action is justified or if a resolution should be reached instead.
How can a Tax Appeal Help Resolve My Tax Liability? A For the IRS to consider a tax appeal, the reason must be legitimate. If you believe an IRS collections officer is pursuing unreasonable collection action against you, an appeal can allow an independent office to review the case, provide an objective opinion, and potentially place you into a resolution without interference from the collections department.
Southern Network Solutions can help determine if a tax appeal is the best course of action for you.