CAP Appeal (Form 9423) vs. CDP Hearing (Form 12153) – What to Know
Help with an IRS lien or levy problem starts here!
Maybe you received a Notice of Intent to Levy, Notice of Federal Tax Lien. Or maybe had your wages or bank account garnished by the IRS. Or did an unreasonable Collections Revenue Officer treat you without dignity or respect? Is there anything you can do?
The answer is YES!
Two appeals programs allow the taxpayer to challenge IRS collection actions – a CAP Appeal or a CDP Hearing.
Each program is completely different. Which is best for your specific situation is not always a straightforward answer. These IRS appeals do different things, and serve different purposes. But they work!
What is a CAP Appeal?
A CAP (Collection Appeal Program) Appeal is a protective program available to taxpayers to challenge certain IRS Actions. Typically, a CAP Appeal Request is filed with the IRS when you’re trying to correct something that IRS collections has done wrong, or is threatening to do wrongfully. You must file Form 9423, Collection Appeal Request. There are lots of rules to follow. If you don’t follow the rules, your request gets denied.
What types of actions does a CAP Appeal apply to?
- A wage garnishment
- A bank account garnishment
- A seizure of property
- A Notice of Federal Tax Lien
There are others, of course. You need to know your rights.
What is a CDP Hearing?
The Collection Due Process Hearing (or CDP Hearing) is something that taxpayers can apply for only in certain cases or events. In that hearing, you have an opportunity with an independent IRS appeals officer to discuss the collection alternative you’re trying to accomplish.
You have to file a Form 12153, Request for a Collection Due Process or Equivalent Hearing. And like with Form 9423, you must follow the strict rules, or you miss your chance.
It’s important to note that once a CDP Hearing has been timely requested, the IRS will suspend collection efforts until the hearing takes place. But the timing is critical. If you wait too late, your choices are limited. Without a tax attorney, your money could be gone!
The CDP Hearing is something that you’ll only file in the event of either IRS issuing a Final Notice of Intent to Levy or when a Federal Tax Lien is issued. Those two events are the main events that will give you the legal position to file and request the hearing. But here’s the official list of events:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund
- Notice of Levy and Notice of Your Right to a Hearing
NOTE: You give up certain rights when you request appeals under either program, so proceed with caution. If you are looking into appealing an IRS collection action, it may be time to find a tax attorney.
Contact Tax Law Offices today. We’re a trusted, experienced IRS Attorney and legal team that can help.
See our reputation with the BETTER BUSINESS BUREAU.
See our reviews on our GOOGLE BUSINESS page.