Frustrated with the IRS’s collection process? Disagree with a collection action proposed on your account? If so, you have the right to challenge IRS collection actions by requesting a managerial review or filing Form 9423 (Collection Appeal Request).
The IRS has a set protocol for the collection appeals process, and you need to ensure that you meet the deadlines. You cannot request a review of the decisions you get from the collection appeals program (CAP). It’s critical to navigate the process carefully to get the desired result.
To get help, contact us at Damien’s Law today. Or keep reading for an overview.
How to Appeal IRS Collection Actions
If you disagree with a collection action, you can appeal by filing Form 9423. However, if you’re working with an IRS revenue officer or another employee, you must first request a meeting with their manager. Then, if you disagree with the manager’s decision, you can file Form 9423.
If you file the 9423 after a meeting with a Collection Manager, you must let the Collection office know within two days after the meeting and postmark the form within three business days of the conference.
In lieu of filing Form 9423, you can send a written protest to the IRS. Ensure that you include the same details requested on the form and explain your protest carefully. Also, include documents to back up your argument.
Collection Actions You Can Appeal
You can appeal any of the following collection actions:
- Federal tax lien.
- Denial of request for lien subordination, withdrawal, discharge, or non-attachment.
- Levies such as a bank levy or wage garnishment.
- Rejection of installment agreement request or rejection of proposed modifications to an existing installment agreement.
- Termination of an installment agreement.
- Disallowance of request by a taxpayer or property owner to return levied property.
Here’s an example of the appeals process. Imagine that the IRS sends you a Notice of Intent to Levy Bank Account. You don’t want your bank account levied, so you file Form 9423, and you request the IRS to let you make payments on your tax debt instead of levying your account. The IRS reviews your request, and then it issues a decision. With this type of appeal, the decision is simply whether or not to go forward with the collection action.
Or imagine that an IRS employee refuses your request to subordinate a tax lien. You request a meeting with the employee’s manager, and during the meeting, you explain that the lien subordination would allow you to take out a loan to pay off your tax debt. The manager denies your appeal, so you file Form 9423. This gives you another chance to present your side of the story, and you need to make a strong argument because you won’t be able to get another appeal on this decision.
How to Complete Form 9423
To complete Form 9423, you need to note your name, Social Security Number (SSN), phone number, and address. If you’re applying for a business, you will need its name and Employer Identification Number (EIN). Then, note the type of tax, the tax period, and the amount of tax due.
In section 14, select the collection action you’re appealing, and in section 15, explain why you’re appealing and your proposal to resolve your tax debt. If needed, you can attach additional pages for your written explanation, and you can also attach documents to support your claim.
Although this form looks short and straightforward, you may want to hire a tax professional to help you complete it. Your appeal is more likely to be successful if you work with someone who has a strong knowledge of the tax code. If you want to complete this form on your own, keep reading for additional tips.
Tips for Creating a Successful Collection Appeal
If you want to appeal a collection action on your own, use these tips to improve your chance of success:
- Make sure you don’t miss the deadlines for your appeal.
- Give a detailed description of why you disagree with the action or the IRS’s decision — Outline exactly how it will affect you.
- Suggest an alternative way to resolve your tax debt — This is imperative. If you don’t suggest a resolution option, the IRS will almost always deny your appeal.
- Don’t send the form to Appeals. Instead, send it to the office that made the collection action or decision.
You are allowed to represent yourself during the appeals process. Alternatively, you can have a Certified Public Accountant (CPA), an Enrolled Agent, or a tax attorney represent you. When choosing a tax professional, look for someone who has experience with your issue. They will know what the IRS wants to hear, and they will be able to present the strongest case possible.
What to Expect When You File Form 9423
Generally, if you submit your collection appeals request by the deadline, the IRS will pause collection actions against you. However, the IRS may continue with collection actions if the agency believes that the tax collection is in jeopardy.
The Internal Revenue Service aims to respond to all collection appeal requests in five business days. IRS appeals may contact you to schedule a CAP hearing over the phone, or they may be able to resolve the case by reviewing the information on Form 9423.
The process may take longer if you have a complicated case or if the IRS is backlogged. Generally, the IRS prioritizes collection appeals requests in the following order: in-business employment taxes, lien and levy cases, and appeals for installment agreements.
Unfortunately, once the IRS responds to your request, you will not be able to appeal again except in limited situations such as a third party contesting a wrongful levy.
Deadline to File IRS Form 9423
The deadline to make a collection appeal request with Form 9423 varies based on the situation. However, in most cases, the deadlines are very tight. Here are the postmark deadlines for this form in various situations:
- To appeal a decision by a Collection manager — Three business days.
- If you don’t get a response to your request for a managerial review — Four business days after you make the request.
- To appeal after the IRS seizes your property — Within 10 business days after the Notice of Seizure is delivered.
- To appeal a decision related to an installment agreement — Within 30 days of the decision.
Collection Appeal Request Versus Collection Due Process Hearing
The IRS allows you to appeal through the collection appeals program or by requesting a Collection Due Process (CDP) hearing. The main distinction between a CAP hearing and a CDP hearing is that you can request a judicial review of a CDP hearing. You cannot request an administrative or judicial review of a CAP hearing. Additionally, in most cases, a CDP case takes longer to resolve.
In a lot of situations, you can choose between both of these options, but in other cases, you are only entitled to one or the other. Your IRS notices should explain your appeal rights and the process for your situation. As indicated above, the collection appeal program generally applies when you want to appeal a specific IRS collection action or decisions about installment agreements. If you’re unsure which option is right for you, contact a tax attorney.
FAQs About IRS Form 9423
What if the collection’s manager doesn’t respond to my request?
If you request a meeting with an IRS employee’s manager and don’t get a response within two business days, you can make an additional request or file Form 9423. If you file 9423, note that you requested a conference and didn’t get a response in Block 15. You should file the form within four days of requesting the conference.
Where should I send Form 9423?
You should send this form to the office that made the decision you’re appealing. Don’t send the form to the general appeals section, or you may incur delays, and the IRS may not stop the collection actions. If you’re unsure of where to send the form, contact a tax professional or reach out to the IRS directly.
What if you miss a deadline for the Collection Appeals Program?
If you miss a deadline, you may still be able to appeal, but you won’t be able to stop the collection action from starting. For example, say that you have a meeting with a collection manager about a proposed levy, and the manager denies your request to stop the levy.
If you submit IRS Form 9423 within three business days, the levy will be paused until the IRS reviews your request. If you miss this three-day deadline, you may still try to appeal, but the levy will most likely go forward.
What if IRS collections are causing economic harm?
Suppose you’re suffering economically due to a collection action. In that case, you can request an appeal, but if you can’t resolve your issue, you can reach out to the Taxpayer Advocate Service by calling 877-777-4778 or by filing Form 911 (Request for Taxpayer Advocate Service Assistance).
What if the IRS rejects my installment agreement?
If the IRS rejects your installment agreement request, you can appeal with Form 9423. You can also use this form to appeal if the IRS terminates your installment agreement or rejects your proposal to modify your agreement. You should appeal within 30 days of the rejection or termination.
Get Tax Attorney Help With the IRS Collection Appeals Program
Dealing with a collection appeal request can be a confusing and frustrating process. It’s also very important to note that the appeal’s decision is binding. Once the IRS reviews your request, you won’t have a second chance to appeal. So, you need to be very careful when navigating this process. We can help ensure that you complete the process as effectively as possible.
To get help appealing an IRS decision or collection action, reach out to our tax attorney today. At Damien’s Law, we provide all of our clients with individualized services tailored to their unique tax problems. Ready to talk? Then, contact us today. We’ll start with a no-obligation conversation about your tax issues. Then, we’ll help you create a plan to resolve your back taxes or other tax issues.