The Collection Appeals Program (CAP) gives taxpayers the opportunity to appeal many types of IRS collection actions. CAP also offers more flexibility than the Collection Due Process (CDP) hearing and generally results in a faster decision.
Collection Actions That Qualify for CAP
CAP covers many more issues than the CDP hearing. CAP can also be used before a CDP notice is issued in some cases, or after a levy has already taken place.
You can use CAP for any of the following IRS collection actions:
- Before or after the filing of a Notice of Federal Tax Lien
- Before or after an IRS levy
- Denial of your request for a lien withdrawal, discharge, or subordination
- Termination, modification, or rejection of your installment agreement
CDP can be used for some, but not all, of these collection actions. If you have the choice of using either CAP or CDP, you should discuss the pros and cons of each approach with a tax attorney before choosing.
Benefits of CAP
CAP is your only appeal option for certain issues, such as installment agreement rejections or lien withdrawal denials. You can usually get a quicker decision using CAP than you would through a CDP hearing.
However, CAP has two important drawbacks that distinguish it from the CDP hearing:
- You can’t use CAP to dispute the amount or existence of your tax liability.
- You can’t appeal the CAP decision to Tax Court.
If you use CAP instead of CDP, you may lose the right to appeal your issues again in a CDP hearing, unless some new information comes up.
How to Request CAP
The way you request CAP can vary depending on what kind of contact you’ve had with the IRS and what type of collection action you are appealing. In some cases, you can ask to speak to a Collection manager and then ask to appeal if you don’t agree with their decision.
A written request is required in other cases. Use Form 9423, Collection Appeal Request, or make your own written request. You may need to call the Collection office and tell them you are submitting an appeal so that they know to temporarily halt collection activities.
Get help requesting CAP to appeal IRS collection actions by contacting a tax resolution attorney.
The Gartzman Law Firm handles all types of IRS appeals, including the CAP procedure. Use our contact form to request a consultation with an Atlanta tax resolution attorney.