You’ve taken the steps to challenge the IRS’s decision regarding your tax debt, and waited patiently for their decision. Unfortunately, the IRS didn’t rule in your favor.
The good news is that not only do you have recourse, you can take up your own defense if you wish to do so.
Acting on your own behalf can be to your benefit, particularly if you’re a low-income person. You’ll have access to a free tax clinic that can provide assistance as you formulate a plan of action and file the necessary paperwork.
One of the options available to you is the IRS’s Collection Appeals Program (CAP). Through CAP, you’ll receive a quicker resolution of your tax issue than through other means such as tax court.
You’re eligible for CAP if your tax issue meets any of the following criteria:
- If your Installment Agreement request has been denied or modified
- If your Installment Agreement has been terminated or will be terminated
- Before or after the IRS levies or seizes assets or property
- Before or after the IRS files the Notice of Intent to Levy
- The disadvantage to utilizing CAP is that their decision is considered final; you do not have the option of appealing the IRS’s decision.
Steps to take
- Call the telephone number shown on your IRS notice
- Tell the phone representative why you would like to the appeal the IRS’s decision and offer a solution
- Be ready to discuss your case with a Collections Manager before moving forward with CAP
- Complete IRS form 9423 within two days of your conversation with the Collections Manager
As intimidating as it may sound, you do have the option of taking the DIY approach to resolving your tax issue with the IRS. The CAP option allows you to resolve your issue in a timely manner and to permanently close your account with the IRS.
