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Office of Appeals – Hearing available Under Collection Appeals Program (CAP) (Part I)

Office of Appeals – Hearing available Under Collection Appeals Program (CAP) (Part I):

 

For the last several weeks we have explored the Appeal’s hearing available under the Collection Due Process (CDP) for lien and levy notices. The IRS has another procedure that is available to most taxpayers under more circumstances than the Collection Due Process.

 

For the next several weeks we will explore what you can and can not do. The various topics that will be discussed are

Notice of Federal Tax Lien

Notice of Levy

Wrongful Levy

How to appeal if contacted by notice or telephone call

How to appeal if contacted by an IRS Revenue Officer

How to appeal the denial

How to appeal the rejected proposed installment agreement

How to appeal the termination of an installment agreement

How to appeal a proposed modification of an installment agreement, etc…

 

(IRS Publication 1660) (TTT 04/16/19)

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

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

 

Appeals will retain jurisdiction over its determination. You may return to Appeals if you believe that the Collection function did not carry out Appeals’ determination as it was stated or if there is a change in your circumstances that affects Appeals’ determination. However, you must first try to work with Collection to resolve the problem.

 

If your request for a CDP hearing is not timely and you request an equivalent hearing, the law does not prohibit levy and the collection statute is not suspended. Furthermore, you cannot go to court if you disagree with Appeals’ decision.

 

(IRS Publication 1660) (TTT 04/09/19)

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

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

 

At the conclusion of the CDP hearing, Appeals will issue a determination letter unless you have withdrawn your hearing request. If you don’t agree with Appeals’ determination, you may request judicial review of the determination by petitioning the United States Tax Court within the time period provided for in the Appeals’ determination letter. You may not be able to raise issues in the Tax Court if you do not raise them during the Appeals hearing, and the Tax Court may limit the evidence you can present to the evidence you submitted to Appeals during the hearing. You should, therefore, raise all issues and present all evidence during the Appeals hearing, in order to preserve your rights to raise issues and have evidence considered in subsequent court proceedings.

 

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

 

(IRS Publication 1660) (TTT 04/02/19)

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

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

 

Part I explained the contacts from the Office of Appeals. This tax tip has a few alerts that occur during the process.

 

Unless one of the exceptions in section 6330(f) applies, for Jeopardy situations, State Income Tax levies, Federal Contractor levies or Disqualified Employment Tax levies, levy action is not permitted for the subject tax and periods during the 30 days after the levy notice and during the timely requested CDP hearing process. Normally, there will be no levy action during the period you have to request a hearing from a lien notice and during the related CDP hearing process.

 

If your request for a CDP hearing is timely, the 10-year period the IRS has to collect your taxes will be suspended until the date Appeals’ determination becomes final or you withdraw your request for a hearing in writing.

 

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

 

(IRS Publication 1660) (TTT 03/26/19)

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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)