Launching Administrative Appeals

If you are planning to contest any of the actions which the IRS are planning then relying on the CDP hearing system is not the only option you have when it comes to appealing in a court of law.

When it comes to taxpayers, the appeal process is vast for those who don’t agree with the tax return which has been processed by the IRS whether penalties have been included or denial from the organization when it comes to providing the taxpayer with a refund that has become due.

As we have helped many hundreds of clients with such matters of this nature, we can help you start action to appeal against any decisions which could have been made with or without your prior knowledge.

The Collection Appeals Program

More commonly referred to as CAP, this provides all taxpayers with the opportunity and right to appeal against a number of collection actions which the IRS may be (if not yet) planning to enforce and despite its limits, one can contest anything from levies, seizures or liens that are to be (if not already) implemented.

No-one can just request the use of the CAP because before any hearing can be held one must first discuss everything with the Revenue Officer’s manager because it may lead to this being avoided and a fair yet just arrangement being made to ensure that payments can be made without the need of court action or further delays. If you plan to meet with the manager then you need to have all the facts ready along with any repayment schedules which could prove useful to the IRS in terms of clearing outstanding taxes but remain calm and focused because otherwise you won’t get very far.

If you the meeting doesn't’t go to plan then the next step would be to initiate the CAP process in which form 9423 “Collection Appeal Request” is to be completed and filed and once the assessment process beings, collection action may be temporarily suspended but this can only occur should it be completed and filed two days following the meeting with manager. Cases involving the CAP are normally closed within two working days so you shouldn't’t have to wait too long for the outcome of the appeal.

Should any cases involve the Collection Division – directly or indirectly or an offer in compromise has been rejected then the CAP won’t apply in these cases.

Taxpayer Assistance Order Application

If you perhaps don’t fall in the category of the CAP then you could always try arguing the actions of the IRS by completing the “Application for Taxpayer Assistance Order to Relieve Hardship”, more commonly known as “ATAO” – form 911. Once completed, this needs to be filed with the Office of the Taxpayer Advocate (formerly known as the Problem Resolution Office).

They have the power to cease any collection actions that are active or perhaps even pending until methods for repayment have been investigated and considered fully. Overall, it can prove to be a great help to taxpayers and to be able to obtain help in the form of an “ATAO” one would need to fall under the following categories:

• An immediate threat of adverse action being taken against a person
• There has already been or could potentially be a 30 day delay (or more) in which account problems are to be resolved
• If interest and late charges continue to accrue on a regular basis
• Serious irreparable injury that could affect the taxpayer in the short and long term making them unable to pay any outstanding amount
  

With these points in mind there are several methods of action that could be taken by the Taxpayer Advocate, which is considered favorable to the taxpayer, but we all need help from time to time, as part of an ATAO, they can do any of the following:

1. Release any levies, bank / third party levies or even the seizure of personal property prior to it being sold to relinquish funds
2. Put a temporary halt on (if not stop) any actions for collection being instigated by the IRS
3. Suspend any other previsions of IRS laws
   

The benefit of working this work is that the IRS must respond quickly (this is stated in the Internal Revenue Manual) so a final decision will often be made within two days of the request being filed. The IRS must halt any action until this time and once a decision has been made then hopefully, things should start to work themselves out.