IRS TAX PROBLEMS – What is a “CAP Appeal” during IRS Collection action?

IRS TAX PROBLEMS – CAP APPEALS

 

 

The “CAP Appeal” procedure is available under more circumstances than Collection Due Process (CDP). Unlike CDP, you may not challenge in CAP the existence or amount of your tax liability. You also cannot proceed to court if you don’t agree with Appeals’ decision in your CAP case.

Collection actions you may appeal under CAP Appeal are:

         Notice of Federal Tax Lien. You may appeal the proposed filing of a Notice of Federal Tax Lien (NFTL) or the actual filing of an NFTL at the first and each subsequent filing of the NFTL. You may also appeal denied requests to withdraw a NFTL, and denied discharges, subordinations, and non-attachments of a lien.

Third parties may file a CAP Appeal regarding the filing of a notice of lien against alter ego or nominee property. There are no CDP rights available for persons determined to be nominees or alter egos. Persons assessed as transferees under Internal Revenue Code (IRC) Section 6901, however, are entitled to CDP rights.

         Notice of Levy. You may appeal before or after the IRS places a Levy on your wages, bank account or other property. Once the Levy proceeds have been sent to the IRS, you may also appeal the denial by the IRS of your request to have levied property returned to you. Please note that a request to return levy proceeds must be made within Nine (9) months from the date of such levy. You may also have additional CDP appeal rights.

         Seizure of Property. You may appeal before or after the IRS makes a seizure but before the property is sold.

         Rejection, Modification or Termination of Installment Payment Agreement. You may appeal when the IRS rejects your request for an Installment Payment Agreement. You may also appeal when the IRS proposes to terminate or terminates your Installment Payment Agreement. In addition, you may also appeal when the IRS proposes to modify or modifies your Installment Payment Agreement.

Wrongful Levy. If you are not liable for tax and the IRS has levied or seized property that you believe belongs to you or in which you have an interest superior to the IRS, you may appeal the denial by the IRS of your request to release the Levy or seizure, or return the property or its value. Please note that a request to the IRS to return wrongfully levied property must be in writing, filed within Nine (9) months of the Levy or seizure and must satisfy certain specific requirements.