Collection Action – How to Appeal an IRS Decision
Collection Due Process (Part III)
During a Collection Due Process hearing, the 10-year period for collecting taxes is suspended. This means the IRS is generally prohibited from seizing (levying) your property, if seizing your property is the subject of the hearing.
The IRS is permitted to seize your property during an Equivalent Hearing or a Collection Due Process hearing about filing of a Notice of Federal Tax Lien, but normally they will not seize property during these hearings. The 10-year period for collecting taxes is not suspended during an Equivalent Hearing.
You are entitled to only one Collection Due Process lien hearing and one levy hearing for each tax period or assessment. You are entitled to propose collection alternatives, such as entering into an installment agreement or an offer-in-compromise, for consideration by Appeals in the hearing. It may be necessary for you to submit financial information or tax returns to qualify for such collection alternatives.
All issues should be raised and all necessary supporting information presented to Appeals at the hearing. You are prevented from raising issues during a judicial review that were not properly raised with Appeals in the Collection Due Process hearing. Your Appeals 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 or place of business. You may be denied a face-to-face conference if you raise issues that are deemed frivolous or made with a desire 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 IRS.gov. For more information about Collection Due Process see Publication 1660.
Next Year: Collection Appeals Program
(IRS Publication 594 and IRS.gov) (TTT 12/17 – 31/19)