Topic 151 - Your Appeal Rights
The IRS has an appeals system for people who do not agree with the results of an examination of their tax returns or with other adjustments to their tax liability.
If your examination or other adjustment was conducted through a personal interview with an IRS employee, the employee will explain your appeal rights to you. If you disagree with the findings, you may request a meeting with the interviewer's supervisor. If you still do not reach an agreement, or if the examination or other adjustment was conducted through correspondence, the IRS will send you a report and/or letter that explains the proposed adjustments. The letter also tells you of your right to request a conference with an Appeals officer, as well as how to make your request for a conference. If you request an Appeals conference, be prepared to support your position.
In addition to examinations, many other things can be appealed. Among them are certain penalties, including the trust fund recovery penalty, offers–in–compromise, employment tax adjustments, liens, levies, seizures, denials or terminations of installment agreements, collection due process notices, denials of abatement of interest and other claims.
Appeals conferences are informal meetings. Your conference may be face-to-face, or by telephone, or by correspondence. You may represent yourself at an Appeals conference; or, if you want, you may have an attorney, a certified public accountant, or an individual enrolled to practice before the IRS represent you. If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
For further information on the appeals process and information on how to stop interest from accruing on any anticipated liability, refer to Publication 5 (PDF), Your Appeal Rights and How To Prepare A Protest If You Don't Agree, and Publication 556, Examination of Returns, Appeal Rights and Claims for Refund. Also, Publication 1660 (PDF), Collection Appeal Rights, discusses how you can appeal collection actions.
Collection Appeals Program (CAP) FAQs
Q. I just got a Notice Number CP504. It says – “Urgent!! We intend to levy Certain Assets.” I don’t agree that I owe this amount. How can I appeal? Will that stop the levy action?
A. The IRS cannot levy with just this notice. They must first issue a formal Notice of Intent to Levy, and that is the next step after this notice. You should therefore call the number on the notice to discuss this situation and your payment options.
Your case is closed as far as any determination about how much you owe, so there is nothing for you to appeal at this point. However, you do have three options to get your case re-opened so the IRS can consider whether you owe any additional amounts:
Q. The IRS Collection function says they are going to file a lien or levy my assts. What can I do?
A. Be sure to contact the Collection function to discuss your situation and your payment options. Refer to Publication 1660, Collection Appeal Rights to review your appeal rights. Some Collection actions qualify for appeal under the Collection Appeals Program (CAP) and some qualify under the Collection Due Process (CDP) appeal. These two programs offer different advantages depending on the facts of your case. Publication 1660 will help you decide which is best for you.
Q. I just received a Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, Letter 3172. I don’t believe I owe this amount. What can I do?
A. Refer to Publication 1660. The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing to discuss the lien filing. You should request a CDP hearing if you feel the lien is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances. If Appeals cannot consider the underlying liability, you have three options to re-open that issue:
Q. I just received a Letter L-1058 or LT11 FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING. I don’t believe I owe this amount. What can I do?
A. Refer to Publication 1660. The Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing. You should request a CDP hearing if you feel the levy is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances. If Appeals cannot consider the underlying liability, you have three options to re-open that issue:
