Appeals Give You a Second Chance to Fight Improper IRS Actions
Don’t assume that you automatically have to pay if the IRS notifies you that you owe. When it comes to taxes, the IRS acknowledges that people often disagree with their decisions. With this in mind, a formal appeals process allows you to challenge IRS decisions.
We aren’t going to force you through an appeal, though. Our tax attorneys analyze all the details of your specific situation to determine if an appeal is an appropriate course of action. It’s important to make sure the appeal is worth your time and money so you don’t end up wasting either.
Once we commit to an appeal, your case will be handled by a local appeals office, independent from the office that made the original decision. This is advantageous because we can represent you and explain to an unbiased arbiter why the original IRS claim is incorrect and why the amount being demanded is inaccurate or entirely invalid.
We file a small case request with the IRS to begin the appeal process if the total amount of taxes, penalties, and interest for a given tax period in question is $25,000 or less. A formal protest will be filed if the total amount is over $25,000. You must meet a set of strict and complex requirements when filing a formal appeal, which is why you want a tax attorney fighting on your behalf.
Appealing a Lien or Levy Through Collection Due Process
When you have a lien or levy against you or properties you have an interest in, the appeal goes through what is referred to as the Collection Due Process (CDP) procedure. This provides taxpayers with the ability to appeal lien and/or levy actions that have been filed against them or against properties that they have an interest in. If you are facing a lien or levy from the IRS against any property, this can be an excellent way to delay any action while you complete the appeal.
Ideally, this strategy can be used to show that the IRS was wrong for filing the lien or levy against the property. In other cases, it is used to help protect property that you have a vested interest in but which the IRS has a lien or levy against related to someone else’s tax issues. Many people also use Collection Due Process procedures to help buy the time they need to come up with the money they owe so that the lien or levy is never executed.
Understanding the CDP Hearing Procedures
An employee whom the IRS considers to be an impartial third party will be conducting the Collection Due Process hearing. This means that the appeals officers involved will have had no prior involvement in the case that caused the unpaid liability. The appeals officer will collect information and consider the following points:
- The details of the CDP notice and the request for the hearing to see whether they are valid and sufficient.
- All relevant information related to any unpaid taxes that are brought up by the taxpayer (or their attorney).
- Defenses made by spouses that are raised at the hearing.
- All challenges that are made by the taxpayer regarding whether or not the collection actions were appropriate.
- Alternative offers made by the taxpayer for collections.
- Weighing whether or not the need for efficient collection of the taxes owed outweighs the valid concern of the taxpayer that the collection action should be as minimally intrusive as possible.
When looked at in detail, Collection Due Process cases can seem very complicated and overwhelming. The fact is, these are often complex cases that involve a variety of different tax laws that must be properly regarded and applied. This is why having a qualified tax attorney is essential to getting the outcome you desire.
Start Your Appeal Today
If you believe an appeal may be the next step with your tax situation, please contact us. Set up a FREE consultation to discuss your case with our experienced and knowledgeable tax attorneys right away.
