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Office of Appeals – What will happen when you request a Collection Due Process or an Equivalent hearing?  (Part I)

Office of Appeals – What will happen when you request a Collection Due Process or an Equivalent hearing?  (Part I)

 

The last few tax tips have been explaining the “how to.”  The next set of Tax Tips will explain what happens.

 

After you request a hearing, you may still discuss your concerns with the Collection office that sent the lien or levy notice. If you are able to resolve the issues with that office, you may withdraw your request for a hearing. If you are unable to, or do not choose to, resolve the issues with the Collection office, your case will be forwarded immediately to Appeals.

 

Appeals will contact you to schedule a conference. Your conference may be held by telephone, correspondence, or, if you qualify, in a face-to-face conference at the Appeals office closest to your home, school or place of business. To qualify for a face-to-face conference, you must not raise any issues that are deemed as frivolous or made with a desire solely to delay or impede collection. If you are proposing a collection alternative, it may be necessary for you to submit financial information or tax returns. Generally, the Office of Appeals will ask the Collection Function to review, verify and provide their opinion on any new information you submit. They will share their comments with you and give you the opportunity to respond. If you request a face-to-face hearing, the Appeals officer will notify you by letter if you need to take steps to qualify for a face-to-face conference.

 

Next week the Tuesday Tax Tip will continue the Appeal process.

 

(IRS Publication 1660) (TTT 03/19/19)

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How do you request a CDP or equivalent hearing with the Office of Appeals? (Part IV)

 

How do you request a CDP or equivalent hearing with the Office of Appeals?

(Part IV)

 

Other suggestions for filing Form 12153, Request for a Collection Due Process or Equivalent Hearing:

 

To preserve your right to go to U.S. Tax Court, you must request a CDP hearing within the time period provided by law. An Equivalent Hearing does not give you the right to go to court.

 

Your request for a CDP hearing must be sent to the address on the lien or levy notice and postmarked on or before the date shown in the lien notice or on or before the 30th day after the date of the levy notice.

 

Before you formally appeal a lien or levy notice by sending us Form 12153, you may be able to work out a solution with the Collection office that sent the notice. To do so, call the telephone number on the lien or levy notice and explain to the IRS employee listed on the notice or other representative why you disagree with the action.

 

If a telephone number is not shown on the notice, you can call 1-800-829-1040. This contact, however, does NOT extend the 30-day period to make a written request for a CDP hearing.

 

(IRS Publication 1660) (TTT 03/12/19)

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How do you request a CDP or equivalent hearing with the Office of Appeals? (Part III)

How do you request a CDP or equivalent hearing with the Office of Appeals?

(Part III)

 

Filing Form 12153, Request for a Collection Due Process or Equivalent Hearing:

 

Form 12153 is available at your local IRS Office, by calling 1-800-829-3676, or from www.IRS.gov.

 

Include a copy of your lien and/or levy notice.

 

List all taxes and tax periods included on the notice you received for which you are requesting a hearing. You are entitled to only one hearing relating to a lien notice and one hearing relating to a levy notice, for each taxable period.

 

In general, the IRS will deny a hearing request that only raises issues identified by the IRS as frivolous or that are made solely to delay or impede collection. For a nonexclusive listing of issues identified by the IRS as frivolous, see “The Truth About Frivolous Tax Arguments” on www.IRS.gov.

 

Next week – discussion on a few suggestions on filing Form 12153

(IRS Publication 1660) (TTT 03/05/19)

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How do you request a CDP or equivalent hearing with the Office of Appeals? (Part II)

How do you request a CDP or equivalent hearing with the Office of Appeals?

(Part II)

 

As mentioned last week, you must identify your alternatives to, or your reasons for disagreeing with, the lien filing or the levy action on Form 12153, Request for a Collection Due Process or Equivalent Hearing or other written request with the same information. (Same as last week, my suggestion is to use Form 12153.)

 

Alternatives or reasons for disagreeing may include:

  • Collection alternatives such as installment agreement or offer in compromise.

 

  • Subordination or discharge of lien.

 

  • Withdrawal of Notice of Federal Tax Lien.

 

  • Appropriate spousal defenses.

 

  • The existence or amount of the tax, but only if you did not receive a notice of deficiency or did not otherwise have an opportunity to dispute the tax liability.

 

  • Collection of the tax liability is causing or will cause an economic or other hardship.

 

Note: You may not raise an issue that was raised and considered at a prior administrative or judicial hearing, if you, or your representative, participated meaningfully in the prior hearing or proceeding. Also, you may not challenge the existence or amount of an assessment made based on court ordered restitution. The form is available on the IRS web site – www.irs.gov

 

Next week – discussion on filing Form 12153.

 

(IRS Publication 1660) (TTT 02/26/19)

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How do you request a CDP or equivalent hearing with the Office of Appeals? (Part I)

How do you request a CDP or equivalent hearing with the Office of Appeals?

(Part I)

 

Complete Form 12153, Request for a Collection Due Process or Equivalent Hearing, or other written request with the same information and send it to the address shown on your lien or levy notice.  My suggestion is to use the form to prevent missing information and missing the time line.

 

To request an equivalent hearing, you must check the Equivalent Hearing box on line 7 of Form 12153, or if you don’t use Form 12153 write that you want an equivalent hearing if the CDP hearing request is late. Your goal is a Collection Due Process but if you miss the deadline, you have another option – Equivalent Hearing.

 

If you received both a lien and a levy notice, you may appeal both actions by checking the boxes on line 6 of Form 12153 or if you don’t use Form 12153, you may appeal both actions in one written request. You must identify your alternatives to, or your reasons for disagreeing with, the lien filing or the levy action.

 

Next week discussion – Alternatives or reasons for disagreeing to the lien or levy action.

 

(IRS Publication 1660) (TTT 02/19/19)

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Hearing Available Under Collection Due Process (CDP) (Part II)

Hearing Available Under Collection Due Process (CDP) (Part II)

For Levy Notices:

For each tax and period, the IRS is required to notify you the first time it collects or intends to collect a tax liability by taking your property or rights to property

The IRS does this by issuing you a pre-levy or post-levy notice. The notice is mailed, given to you, or left at your home or office. During the 30-day period from the date of the notice, you may request a hearing with Appeals. There are four exceptions to issuing this notice before levy:

1. When collection of the tax is in jeopardy.

2. When the IRS levies your state tax refund.

3. When the criteria for a Disqualified Employment Tax Levy is met.

4. When the IRS serves a federal contractor levy.

You may request a hearing after the levy action in these instances.

If your request for a CDP hearing is not timely, you may request an equivalent hearing. To receive an equivalent hearing, your request must be postmarked on or before the end of the one-year period after the date of the levy notice or on or before the end of the one-year period plus 5 business days after the filing date of the Notice of Federal Tax Lien.

(IRS Publication 1660) (TTT 02/12/19)

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Hearing Available Under Collection Due Process (CDP) (Part I)

Hearing Available Under Collection Due Process (CDP) (Part I)

For Lien Notices:

By law, you have the right to a CDP hearing when you receive a Notice advising you of this right and you timely postmark a request for a hearing to the address indicated on the Notice. You are limited to one hearing under section 6320 (Notice and opportunity for hearing upon filing of notice of lien) and 6330 (Notice and opportunity for hearing before levy) for each tax assessment within a tax period.

You may contest the CDP determination in the United States Tax Court.

Lien Notice: The IRS is required to notify you the first time a Notice of Federal Tax Lien is filed for each tax and period. The IRS must notify you within 5 business days after the lien filing. This notice may be mailed, given to you, or left at your home or office. You then have 30 days, after that 5-day period, to request a hearing with Appeals. The lien notice you receive will indicate the date this 30-day period expires.

Next week a discussion on Levy Notices.

(IRS Publication 1660) (TTT 02/05/19)

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Your Collection Appeal Rights (Part II)

Your Collection Appeal Rights (Part II)

 

The two main procedures to appeal IRS collection activities are the Collection Due Process (CDP) and Collection Appeals Program (CAP) discussed in last week’s blog post.

CAP generally results in a quicker Appeals decision and is available for a broader range of collection actions. However, you cannot go to court if you disagree with the CAP decision. CAP procedures will be discussed in a future blog post.

You may represent yourself at CDP, CAP and other Appeals proceedings. Or, you may be represented by an attorney, certified public accountant, or a person enrolled to practice before the IRS. Also, you may be represented by a member of your immediate family, or in the case of a business, by regular full-time employees, general partners or bona fide officers.

A Low Income Taxpayer Clinic (LITC) may represent you if you qualify. LITCs are independent from the IRS and most provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or for a small fee. Some clinics can provide multilingual information about taxpayer rights and responsibilities. Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area and is available at your local IRS office, by calling 1-800-829-3676, or from www.IRS.gov.

If you want your representative to contact the IRS or appear without you and to receive and inspect confidential material, you must file a properly completed Form 2848, Power of Attorney and Declaration of Representative. You may also authorize an individual to receive or inspect confidential material but not represent you before the IRS, by filing a Form 8821, Tax Information Authorization. These forms are available at your local IRS office, by calling 1-800-829-3676, or from www.IRS.gov

(IRS Publication 1660) (TTT 01/29/19)

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Your Collection Appeal Rights (Part I)

Your Collection Appeal Rights (Part I)

 

You may appeal many IRS collection actions to the IRS Office of Appeals (Appeals). Appeals is separate from and independent of the IRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policy of prohibiting certain ex parte communications with the IRS Collection office or other IRS offices, such as discussions regarding the strengths or weaknesses of your case. Revenue Procedure 2012-18 has more information about Appeals’ independence and ex parte communication and is available at www.IRS.gov.

 

The two main procedures are Collection Due Process and Collection Appeals Program. Other procedures will be described in future blog posts.

 

Collection Due Process (CDP) is available if you receive one of the following notices:

  • Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
  • Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
  • Notice of Jeopardy Levy and Right of Appeal
  • Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
  • Post Levy Collection Due Process (CDP) Notice

 

Collection Appeals Program (CAP) is available for the following actions:

  • Before or after the IRS files a Notice of Federal Tax Lien
  • Before or after the IRS levies or seizes your property
  • Termination, or proposed termination, of an installment agreement
  • Rejection of an installment agreement
  • Modification, or proposed modification, of an installment agreement

 

More information next week.

(IRS Publication 1660) (TTT 01/22/19)

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How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option Two    Part VI

How Do You Remove a Lien Against Your Property?   Requesting a Withdrawal of a Lien – Option Two    Part VI

A “withdrawal” removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property; however, you are still liable for the amount due. For eligibility, refer to Form 12277, Application for the Withdrawal of Filed Form 668(Y), Notice of Federal Tax Lien (Internal Revenue Code Section 6323(j)) (PDF) and the video Lien Notice Withdrawal.

Two additional Withdrawal options resulted from the Commissioner’s 2011 Fresh Start initiative. Last week option one was discussed.

Option Two

The other option may allow withdrawal of your Notice of Federal Tax Lien if you have entered in or converted your regular installment agreement to a Direct Debit installment agreement. General eligibility includes:

  • You are a qualifying taxpayer (i.e. individuals, businesses with income tax liability only, and out of business entities with any type of tax debt)
  • You owe $25,000 or less (If you owe more than $25,000, you may pay down the balance to $25,000 prior to requesting withdrawal of the Notice of Federal Tax Lien)
  • Your Direct Debit Installment Agreement must full pay the amount you owe within 60 months or before the Collection Statute expires, whichever is earlier
  • You are in full compliance with other filing and payment requirements
  • You have made three consecutive direct debit payments
  • You can’t have defaulted on your current, or any previous, Direct Debit Installment agreement.

(IRS.gov) (TTT 01/15/19)