IRS Tax Appeals

The IRS can audit you by mail, in its offices, or in your office or home. In turn, you have the right to appeal action taken against you by the IRS. An appeal is a request made by a taxpayer to change a decision made by the IRS regarding the individual’s taxes. Filing an appeal notifies the IRS that the taxpayer doesn’t agree with a decision made by the IRS and that he or she is seeking a meeting to change the decision.

Different Types of Appeals

A Collection Appeal Request (CAP Form 9423) is used when a taxpayer and a revenue officer (Collection) do not agree on a collection that the IRS wants to implement or already has implemented, such as a levy, lien, seizure, or the denial or termination of an installment agreement.

A request for a Collection Due Process (CDP) Hearing (CDP Form 12153) is an all-purpose appeal. Generally, it is invoked when the IRS has already issued a lien or is about to issue a levy and the taxpayer wants to request an alternative collection option that is less intrusive, such as an offer in compromise. Other reasons for a CDP Payment Plan are taxes “currently not collectible,” request of Innocent Spouse Relief or a requested withdrawal, discharge or subordination of a lien. There are certain legal and administrative notices and requirements the IRS must send and/or meet before a taxpayer can file this type of appeal.

An Application for Taxpayer Assistance Order (Form 911) is used when the taxpayer has exhausted all other means of trying to resolve an issue with the IRS but an agreeable decision cannot be reached. This appeal is handled by the IRS Taxpayer Advocate Service. The Taxpayer Advocate Service cannot overturn an appeals officer decision. However, it can expedite matters and is very helpful in most circumstances.

All Collection Actions Can Be Appealed

Almost every type of collection action taken by the IRS can be appealed. The taxpayer must file an appeal request within a certain timeframe and follow IRS guidelines for an appeal request to be valid. The following actions can be appealed: audits/examination determinations; offers in compromise; installment payment plans; requests for penalty removal; innocent spouse decisions; levies; liens; and, seizures.

The most common IRS decisions appealed are IRS audits and an offer in compromise where the IRS has increased the taxpayer’s tax liability or has rejected an offer in compromise. Offers in compromise that increase the taxpayer’s liability often include additional penalties and interest. Call us toll free at 866.749.7717