Publication 1660: IRS Collection Appeal Process

Publication 1660, titled "Collection Appeal Rights," is an informational resource provided by the Internal Revenue Service (IRS) to help taxpayers understand their rights and options when facing IRS collection actions. It outlines the Collection Due Process (CDP) program and the Collection Appeals Program (CAP), which allow taxpayers to dispute certain IRS collection activities.

What is the Purpose of Publication 1660?

Publication 1660 empowers taxpayers to understand the IRS collection process and their ability to contest specific actions. By familiarizing yourself with this publication, you can navigate potential disagreements with the IRS and potentially resolve outstanding tax issues.

Commonly Appealed Collection Actions

A. Federal Tax Liens: A lien is a legal claim the IRS places on your property to secure payment of unpaid taxes. Publication 1660 explains how to appeal the filing of a lien if you believe it's unnecessary or incorrect.

B. Levies: A levy allows the IRS to seize and sell your property, including wages, bank accounts, or vehicles, to settle outstanding tax debts. You can utilize Publication 1660 to contest a proposed levy if you disagree with the amount owed or the seizure method.

C. Seizure of Property: The IRS may seize your property if you haven't paid your taxes. Publication 1660 outlines the steps to appeal a seizure before or after the IRS takes possession of your property, but prior to its sale.

D. Termination of Installment Agreement: If you have an existing installment agreement for paying back taxes and the IRS seeks to terminate it, Publication 1660 provides details on how to appeal this decision.

How Does the Collection Appeal Process (CAP) Work?

The CAP allows you to discuss your concerns with the IRS directly. Here's the process:

  • Request a conference: If you disagree with a proposed collection action, you can request a conference with the Collection Manager at your local IRS office.
  • Explain your situation: During the conference, explain why you believe the action is incorrect and propose a solution for resolving your tax debt.
  • Appeal to Appeals Office (if necessary): If you're unsatisfied with the outcome of the conference, you can submit a written appeal to the IRS Appeals Office. This is typically done using Form 9423, Collection Appeal Request.
  • Present your case: An Appeals Officer will review your case and consider your arguments. They may propose an alternative solution.

What is a Collection Due Process (CDP) Hearing?

If the CAP doesn't resolve your issue, you can request a CDP hearing. Here's what you need to know:

  • Time limits: You have 30 days from the date you receive a notice of a proposed lien or levy to request a CDP hearing.
  • Form 12153: You'll need to submit Form 12153, Request for a Collection Due Process or Equivalent Hearing, to request the hearing.
  • Hearing format: An impartial IRS hearing officer will conduct the hearing. You can present evidence and arguments to support your case.
  • Possible outcomes: The hearing officer may decide to uphold the IRS's action, modify it, or completely stop the collection activity.

How do I know if I can appeal an IRS collection action?

Publication 1660 details which collection actions can be appealed. Generally, you can appeal if you disagree with the amount you owe, believe the proposed action is incorrect, or have extenuating circumstances that prevent payment.

What steps should I take to appeal an IRS collection action?

The first step typically involves contacting the Revenue Officer assigned to your case and requesting a conference with the Collection Manager. Publication 1660 outlines the specific procedures depending on the collection action you wish to contest.

What forms do I need to file an appeal?

The primary form used for appealing collection actions is Form 9423, "Collection Appeal Request." Publication 1660 provides details on where to obtain this form and how to complete it accurately.

What happens after I file an appeal?

Once you submit your appeal, your case will be reviewed by the IRS Office of Appeals. Publication 1660 explains the potential outcomes of your appeal, including reaching an agreement with the IRS, requesting a hearing, or pursuing further options like Tax Court.

WatchIT