Collection Due Process Appeals

CDP - Collection Due Process Appeals – A Helpful Guide form 12153 responding to LT11, 1058 letter, 3172 letter

As a taxpayer, you’ll know right off the bat, how important it is to ensure that you stay on the good side of the IRS. Once the IRS have their sights set on you, it can be tough to navigate your way out of their crosshairs. Tough, but not impossible. You see, the IRS, though hugely intimidating, is still a business like any others. It is made up of pretty ordinary individuals, and though some may argue that they are cold and callous, you will find that generally they aren’t always as intimidating as people would have you believe. What is also worth noting, is the fact that, as the IRS is made up of everyday people like you and I, mistakes do happen on their part from time to time, which is why we have collection due process appeals. If you’re facing the wrath of the taxman and are not sure what your next move should be, this guide is for you as we will now be taking a detailed look at Collection Due Process Appeals – CDP form 12153 responding to IRS notices LT11, 1058 letter or 3172 lien letter.

Contact us today at 877-788-2937 for a free confidential evaluation.

What are Collection Due Process Appeals? – As an individual, as well as a business owner, you are allowed your rights. Invoked back in 1998 as a result of the IRS taking liberties and basically walking all over everyday individuals, CDP collection due process appeals were created in response to IRS officers seizing properties, levying accounts, and this basically taking liberties. Everyday individuals were at the mercy of the taxman, which mean that if the IRS came for you, even if they were in the wrong and you had done nothing wrong and owed them nothing, they could basically do what they liked. In 1998 however, things changed as people had finally had enough. Known as sec 6330, this new law ensured that the IRS must provide individuals and business owners with prior notice, as well as the right to a hearing and to appeal using CDP form 12153, before they could levy. If the individual in question was indeed appealing, until the appeal had reached a conclusion, the IRS would not be able to levy accounts or goods. Though they sound very complex, and probably conjure up images of grand courtrooms like you see on the TV in intense legal dramas, many of these appeals are incredibly informal. In fact, they are sometimes held over the telephone. It is however, your right to request a face to face hearing if that would work better for you.

What you should do? – If you have received notification from the IRS, that they intend to file a federal tax lien, or to file a levy, against you, you need to know how to act. Ideally you will contact our professional tax representation firm, we can offer you help and advice every step of the way. You also need to know how the process works. Typically, when you receive a final notice from the IRS, LT11 or 1058 letter, you will have 30 days to request a CDP hearing, which you should do by filing form 12153. This must be filed within 30 days of receiving the final notice, LT11, 1058 letter or 3172 lien letter, otherwise you won’t have a leg to stand on if you file late. On this form you will be required to provide as much info as possible, including:

  • Form 433 with financial and background info on yourself or business

  • Reasons why you believe that the IRS has made an error

  • An explanation of why you are appealing

  • And any other info which may be pertinent to your case

Be warned however, if you fail to fill in the form 12153 correctly, or completely, your request for an appeals hearing will be denied outright. You may also wish to file this form with certified mail, otherwise, if the form was lost in transit, again there would be nothing you could do. Providing the form is filed on time, and the info is indeed correct, your case will be transferred to the IRS Appeals Division. This is a small victory in itself because it means the IRS cannot take any action against you, and cannot seize assets, or income, until the appeal has reached a conclusion.

Very important, if you receive a final notice of levy LT11, 1058 letter or 3172 lien letter, you should consider filing your CDP collection due process form 12153 timely to protect your rights and reach a resolution.

What are your options during a Collection due process appeal? – During your appeals hearing, you have a number of options at your disposal. To begin with, obviously you will be required to raise any issues you have regarding the IRS’ verdict and to basically explain why you feel that they are in the wrong and that you are in the right. During a CDP appeal, you have the following options at your disposal:

  • Argue against the filing of any federal tax levies and or liens

  • Enquire about the possibility of alternative collection methods such as tax payment plans

  • Raise what is known as an Innocent Spouse Defence

  • Argue for the abatement of penalties and interest

  • Challenge the practicality and suitability of the proposed collection methods

  • Challenge the amount, and indeed, the existence, of the tax liability for any taxation periods

  • Challenge the decision of a revenue office who may have rejected any payment plans you may have proposed

Awaiting the verdict – Once the collection due process appeal is over you then play the waiting game. The IRS will mail you the final verdict via certified mail. Again, if you don’t agree with the decision, you can again appeal, and must ensure you do so within 30 days. This is again where hiring our professional tax representation firm is so useful because not only can we help ensure you stay on the taxman’s good side, we can also assist you with the appeals process and can offer valuable IRS help and advice.

Contact us today at 877-788-2937 for a free confidential evaluation.

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