IRS Law Blog

If you owe the IRS back taxes, it is not always enough to just be “right” when negotiating with the government.

You need to be right, but you also need to be in the right place and working with the right IRS person.  This increases the likelihood of a fair and impartial review of your case.

Getting to the right place with the right person is accomplished by requesting an IRS collection due process appeal.

The benefits of collection due process appeals are significant and should be considered in every IRS collection case.  Here they are:

1. An IRS collection due process appeal places the resolution of your case in the hands of an IRS appeals officer, not a collections representative.
2. IRS appeals officers are trained to settle cases; IRS collection representatives are trained to enforce collection laws. Settle your case with a settlement officer.
3. You could have a have a face to face, personal meeting with an IRS appeals officer in your city to resolve your case.  This is a much preferred alternative to negotiating with the impersonal and distant IRS Automated Collection System, where every time you call you will talk to somebody different and never have a meeting.
4. Collection due process appeals protects your assets while you negotiate a solution.  In most cases, the filing of the appeal stops the IRS from collecting until it is resolved.  This evens the playing field and protects your assets while you negotiate.
5. If you cannot reach a resolution with IRS appeals, you have the right to have a Tax Court judge decide your case after the appeal is closed.  This is not available if you negotiate with the IRS through normal collection channels (i.e., ACS, Revenue Officer).

If you are considering an offer in compromise, know that a collection due process appeal is the only way to have anyone outside the IRS review the offer if it is denied.

You are eligible for a collection due process appeals if you have received an IRS Final Notice of Intent to Levy.  Your appeal request should be filed within 30 days from when the IRS sends you the notice of intent to levy.  If more than 30 days has lapsed since the IRS sent you the notice of intent to levy, the IRS will still allow you additional time – up to one year – to file your appeal and be heard, but you will not be able to take your case to Tax Court if you disagree with appeals.

Take the IRS collection machinery down to a one on one, personalized level. Collection due process appeals do that, and in most cases allow you to negotiate without the risk of enforced collection.