Los Angeles, California (PRWEB) January 24, 2013
In the IRS' own words, “Taxpayers may appeal many IRS collection actions”. (See IRS manual 5.19.8 under Collection Appeal Rights.) The manual outlines two different roads to appealing IRS collections: Collection Due Process and the Collection Appeals Program. Platinum Tax Defenders outlines the differences of these two types of collection appeals, and offers suggestions on what can be done for a taxpayer facing either road.
Collection Due Process (CDP) allows a taxpayer to appeal the Notice of Federal Lien tax. Appeals can be made under this system either before or after the bank levy has been issued. Notice of Your Right to a Hearing can also be issued by certified mail or in person, though the manual only specifies that notice should be given “at the last known address”. CDP allows for an independent review of the case, and is more geared toward alternative means of tax resolution, such as an Offer in Compromise or an Installment Agreement. However, CDP does not protect against property seizure for back taxes or wage garnishments as the case progresses.
The Collection Appeals Program (CAP) is both more and less flexible. Through CAP, a taxpayer is allowed to appeal an IRS rejection of an Installment Agreement request. CAP is possible after property has been seized already, but quite often a hold is put on property seizure or liens after the taxpayer enters a collections appeal. CAP can be a temporary protection against seizure. The 'less flexible' part of CAP is that the decision made by the IRS Appeals Office is binding on the IRS and the taxpayer, without recourse to the legal system. Essentially, the taxpayer becomes their own advocate, and must bear the consequences of the Appeals Office decision.
Some general tips apply to both CDP and CAP. A taxpayer can write a protest letter outlining why the tax burden is unfair or stating specific errors by the IRS, in which case documentation ought to be attached. If the tax debt is over $25,000, a 'formal written request' must be made with all pertinent information, including: name and address, social security number, statement of appeal, copy of the disputed letter, tax filings under dispute, tax years, legal citations, etc. The Freedom of Information Act also allows for the taxpayer to view a copy of the auditor's file, which can also be a delaying tactic as the taxpayer gathers information and resources. Platinum Tax Defenders suggests that utilizing tax resolution services, or a tax resolution specialist, may be wise. Even experienced taxpayers may find document requests and the burden of proof required by the IRS to be draining, and CAP does not allow for multiple appeals.
Platinum Tax Defenders offers a free consultation by phone, without further obligation, so that taxpayers can be informed of their rights and possible solutions. Platinum Tax Defenders has a dedicated team of 10 professionals (including tax attorneys, CPA's and former IRS agents) with a ten-year track record of stopping bank levies and removing tax liens. Most initial consultations range from 20 to 45 minutes, in which a qualified tax resolution professional can examine the specifics of the situation and offer strategies for dealing with the IRS.
For more information from Platinum Tax Defenders on stopping property seizure and getting help with back taxes, call 1-877-668-1807 or send an email to info (at) tax-resolution (dot) me.