07 Nov When to File Collection Appeal Request (CAP) IRS form 9423
A Collection Appeal Request (CAP) – IRS Form 9423 – is filed in response to the IRS enforcing collection against an accrued amount they believe they are owed by you or the denial or termination of an installment agreement. Except in specific cases involving asset seizure, a conference with the collections function manager is required in the attempt to resolve the issue in advance of the CAP being forwarded to a settlement officer for a hearing. CAPs address the following issues:
- Federal tax lien,
- Levy or notice of levy,
- Denial of installment agreement, and
- Termination of installment agreement.
Time frames for submission following IRS enforced collection are critical. For example, if a taxpayer receives a Notice of Rejection/Denial of proposed installment agreement, a CAP must be filed within thirty days of the date of the notice in order to conduct the managerial conference and CAP hearing free from additional enforced collection action. If the CAP is filed after the 30-day filing window has expired, the managerial conference and CAP hearing will likely still be conducted; however, the IRS will not be precluded from simultaneously moving forward with additional enforced collection action against the period(s) included in the CAP.If no conclusion is reached in the mandatory managerial conference, the CAP is forwarded to a local IRS Appeals office and a settlement officer will be assigned. Per IRM 184.108.40.206:
Oftentimes, the issue raised in a CAP will require additional financial information to make a determination such as proof of financial hardship incurred when determining whether or not to release a wage levy.
Proactively gathering financial information before the CAP is filed will aid in reaching an amicable resolution quickly. Lately they’ve been trying to settle these things in 5 business days including having a settlement officer confirm the IRS followed all procedural requirements in enforcing collection efforts. After reviewing all relevant information, the settlement officer will issue a determination sustaining/upholding the collection action or releasing/reversing the action. The settlement officer has the ability and authority to offer a mediated resolution such as an installment agreement with augmented terms or a partial release of a bank account levy.
John R. Dundon, EA – 720-234-1177 – firstname.lastname@example.org – http://prep.1040.com/jd/ – DEFEND YOURSELF AGAINST THE IRS – Enrolled with the United States Department of Treasury to Practice before the IRS – Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent – I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.