Virtually every IRS decision can be appealed or challenged. Audit findings, installment agreements, offers in compromise, and penalty assessments can be appealed. Appealing IRS collection will put the brakes on liens, levies and seizures.
Collection Due Process Appeal (CDP). The CDP is the most powerful method to defend against enforced collection. Collection due process rights include participation in a hearing to explore collection alternatives such as an offer in compromise or payment agreement. Even the tax liability itself can be challenged in a CDP. The appeal is a fresh look within a division often more receptive to resolving the tax problem than a stubborn Revenue Officer. You are allowed 30 days from the date of an IRS final notice to file a CDP.
Equivalent Hearing. If a levy or lien started and the 30 day deadline to file a Collection Due Process hearing was blown, the alternative is to request an Equivalent Hearing. An Equivalent Hearing is similar to a CDP, although in the event the taxpayer is not successful, it’s the end of the line, and unlike a CDP, an appeal to U.S. Tax Court is not permitted.
United States Tax Court. This court is the “great equalizer” for citizens and businesses facing IRS problems. Without our tax court, the IRS would be invulnerable to checks and balances on its power. For example, if you are not successful at a Collection Due Process hearing, or if you receive a Notice of Deficiency that you owe tax, these decisions can be appealed in the United States Tax Court. Or if you are denied innocent spouse relief, you can appeal in U.S. Tax Court. In fact, if the IRS stonewalls your claim for innocent spouse relief, you can go directly into Tax Court without waiting for a decision from the IRS.
Taxpayer Assistance Order. If IRS collection – like a levy - creates undue hardship, Faith Law Firm may obtain a Taxpayer Assistance Order to get relief and allow consideration of alternative collection methods. A Taxpayer Assistance Order may be just the right cure for a Revenue Officer who fails to act in accordance with the language and spirit of the Internal Revenue Manual.
You may discover valuable benefit in giving us a call to discuss your situation initially free of charge, or get our free book, How to Get Tax Forgiveness.