Are IRS Collectors After Your Assets?
If you've received written or verbal notice of an IRS levy or seizure, you have the right to file a collection appeal. Read the letter carefully. How to prepare the appeal, send the request, deadline and other details will be there. The collection efforts are usually suspended during the appeal process.
Can You Ask For A Hearing?
Before asking for a hearing, try discussing the issue first with the revenue officer assigned to your case, and if that doesn't work, follow up with the officer's collection manager. Many times collection efforts begin when the IRS has had no communication from the taxpayer. A phone call or meeting at this point may be all that's required. If you can't come to an agreement with the collection manager, the next step is to appeal.
What can you file an appeal for?
Here are a few reasons for filing an appeal with your tax collector:
- A Rejected Offer In Compromise
- Termination Of Installment Agreements
- IRS Seizures, Levies And Liens
- Disputing Interest And Penalty Fees
- Employment Tax Adjustments
What Will You Need?
To file an appeal, you'll need Form 9423. On that form, explain why you have a dispute with the IRS and suggest how it can be resolved. The reason for your appeal determines your time frame for filing. For example, if your dispute involves a seizure or levy you have only 2 days after your conference with the collections manager to file before the IRS will resume its collection efforts. On the other hand, you will have up to 76 days to appeal the termination of an installment agreement. You do not want to lose your chance at an appeal by filing it late and incorrectly, so request a hearing right away. Time is important, especially if the IRS has increased your tax bill and added penalties and interest.
What Are Your Options?
Appeals Officers are expected to close collection appeals within 5 days. Keep in mind that a collections appeal does not address the issue of how much you owe or if an auditor's findings were correct. That is a different, longer process. If collection efforts have begun and you want to dispute the amount owed, you have three options:
- Pay the amount due, apply for a refund, and if your refund is disallowed you can then start the appeal process.
- Request an Audit Reconsideration as shown in the instructions in IRS Publication 3598. You must have new information the IRS didn't have previously consider in order to do this.
- File an Offer in Compromise, Doubt as to Liability as shown in IRS Form 656.
IRS agents are not evil, they are federal employees whose main goal is to find solutions and clear their cases quickly. Communication and adhering to deadlines and filing requirements are key to successfully resolving disputes.
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