collection appeals

What Are IRS Collection Appeals?

If you currently have an account in collections with the IRS, you know how frustrating it can be to deal with the barrage of phone calls and mailings accompanying tax debt. If you’ve been struggling for months or years with tax debt, it can be incredibly frustrating to deal with a collections agency that threatens to place a lien on your home or garnish your wages. IRS collection appeals may be the answer to your frustrations.

Fortunately, there is something that you can do. The IRS has a Collections Appeals Procedure that can help taxpayers avoid the harsh penalties for dealing with a debt that is in collections and can’t be resolved. Navigating the appeals process, however, can be tricky. Generally, it’s a good idea for a taxpayer who needs to file a collections appeal to seek counsel from a tax resolution firm, such as Peace Of Mind Tax Help.

What Is Collection Appeals?

When a tax debt goes into collections, the IRS has already determined that the debt is owed to the government. In some cases, it may be possible to negotiate or apply for an installment agreement on the amount owed. However, once the IRS decides how much is owed and how the debt should be paid, it often goes into collections.

If payments are not made on time or if more than one payment is missing, the IRS will take steps to recover the money that is owed. This usually means they will terminate the installment agreement and seek to recover the funds through other means. These methods can include:

In these cases, however, it is possible to appeal to the IRS to stop these actions. The Collection Appeal Program (CAP) allows taxpayers to negotiate new payment terms on their tax debt. While it is rare for taxpayers to have the debt wholly forgiven, it is possible to reach an agreement in which you would pay less every month or temporarily have collection efforts stop until you can resume payments.

How Can I Get One?

If you’re in a position where you are unable to follow the terms of your installment agreement, or if the IRS is trying to collect a lump sum of money that you cannot pay, then it is possible to file for the Collection Appeal Program or CAP. The process usually starts with you or your tax relief representative calling the IRS directly and speaking with your Collections Manager or Revenue Officer. Sometimes, working out an agreement without going through the entire collection appeals process is possible.

If this does not work, you or your representative must file IRS Form 9423, Collection Appeal Request. This form will start the appeals process and refer the case for an appeals hearing.

These hearings tend to be informal and are via phone in many cases. The hearings are also expeditious; most issues have a resolution in a single phone call. For this reason, the best recommendation is that taxpayers hire professional representation, such as an Enrolled Agent, that is very familiar with the process. The appeals hearing is the only time a taxpayer can present evidence that shows why they need a modification to the installment agreement or more time to pay the debt on their own. These records are compared to the IRS’ files on the taxpayer to resolve the dispute.

These hearings are the final decision regarding payments to the IRS. Taxpayers do not have the right to sue over a CAP decision in court.

What Can I Get From A Collection Appeal?

An IRS collection appeal aims to work out a new payment agreement with the IRS that avoids consequences such as wage garnishment, tax liens, or tax levies. However, depending on the amount of the debt and the taxpayer’s case history, it may not always be possible to avoid these outcomes.

Generally, taxpayers with the means to pay a debt will be ordered to do so by the IRS. However, suppose a taxpayer is experiencing a temporary setback, such as a job loss or illness preventing a taxpayer from earning income. In that case, however, it is more likely that the appeals process will grant them a modification to their installment agreement or extra time to come up with the money to pay the debt by going into currently not collectible status.

What Happens If I lose The Appeal?

If you lose your collections appeal, the IRS has the right to use other means to recover the money owed to the federal government. This can include wage garnishment and tax liens or levies on the taxpayer’s assets.

Peace Of Mind Tax Help Collection Appeals Representation

One of your most important rights as a taxpayer is your right to have a qualified tax resolution professional, such as an Enrolled Agent (EA), represent you in front of the IRS Office of Appeals with your collection appeal.

When you hire Peace Of Mind Tax Help to assist you with your IRS collections appeal, we will guide you through the process while advocating on your behalf and protecting your interests.

Peace Of Mind Tax Help is here to help you because when you’re dealing with lousy tax debt, the worst thing you can do is do nothing and be taken advantage of. The best decision is to take the necessary first step and to try to obtain some tax debt relief by filing an IRS collection appeal!

Click on the “Get Peace Of Mind” button at the top of the page to take that first step.