Knowing how to use the IRS Collection Appeals Process (CAP) can help protect your rights if you’re facing IRS collection actions like levies or liens. CAP lets taxpayers challenge IRS enforcement actions. It may also delay or prevent those actions while your case is reviewed. Here’s a guide on how to make the most of IRS Collection Appeals:
What is the IRS Collection Appeals Program (CAP)?
The Collection Appeals Program (CAP) lets taxpayers appeal IRS collection actions. CAP covers liens, levies, installment agreements, and property seizures. It’s faster than other appeal processes, often resolving cases within five days.
When to Use CAP
There are several situations where CAP can help:
- Lien Filings: If the IRS places a lien on your property, you can appeal it through CAP. This gives you time to devise another solution, like an Installment Agreement.
- Levies: If the IRS plans to seize your wages or bank accounts, you can file a CAP appeal to stop or reverse the levy.
- Installment Agreement Rejection: If your request for an installment agreement is denied or an existing one is modified or terminated, you can appeal through CAP. This is useful if the IRS is misjudging your ability to pay.
- Seizure of Property: If the IRS is about to seize your property, CAP can force the IRS to reconsider before taking your assets.
How to File a CAP Appeal
To file a CAP appeal, complete Form 9423 (Collection Appeal Request). Send it to the IRS office that took the collection action. File your appeal quickly since you can only request a hearing before the action occurs—except for liens and levies, which you can appeal after they happen.
Tips for Success
- Act Quickly: The CAP process is fast. File your appeal as soon as you receive notice of a collection action. Once the action occurs, you have fewer options.
- Provide Strong Documentation: Support your appeal with financial documents, hardship information, or reasons for unfair action. This can boost your chances of success.
- Seek Professional Help: Consider working with a tax professional experienced in IRS appeals for complex situations. They can help present your case effectively.
Conclusion
The IRS Collection Appeals Process can stop aggressive collection actions. You can potentially reverse liens, levies, and more by acting quickly, filing an appeal, and providing solid documentation. Getting professional help can also improve your chances of a successful outcome for tricky cases.
