Office of Appeals – Hearing available Under Collection Appeals Program (CAP) (Part II):
The CAP procedure is available under more circumstances than Collection Due Process (CDP). Unlike CDP, you may not challenge in CAP the existence or amount of your tax liability. You also cannot proceed to court if you don’t agree with Appeals’ decision in your CAP case.
Collection actions you may appeal under CAP – Notice of Federal Tax Lien:
You may appeal the proposed filing of a Notice of Federal Tax Lien (NFTL) or the actual filing of an NFTL at the first and each subsequent filing of the NFTL. You may also appeal denied requests to withdraw a NFTL, and denied discharges, subordinations, and non-attachments of a lien.
Third parties may file a CAP appeal regarding the filing of a notice of lien against alter ego or nominee property. There are no CDP rights available for persons determined to be nominees or alter egos. Persons assessed as transferees under Internal Revenue Code (IRC) Section 6901, however, are entitled to CDP rights.
Next week – Notice of Levy discussion
(IRS Publication 1660) (TTT 04/23/19)