At Sterbick & Associates, we comprehend the critical importance of timely filing appeals when contesting IRS decisions. Failure to do so can sever the appeal chain, relinquishing your right to challenge IRS actions through the Tax Court.
Filing appeals presents distinct advantages. Appeals officers possess greater flexibility to settle cases compared to revenue officers. Moreover, enforced collection activities such as levies and wage garnishments are paused during the appeal process, allowing for comprehensive issue resolution.
Before tax debt levies are initiated, you’ll receive two crucial letters. The initial communication, CP504, demands payment or threatens asset seizure without offering appeal rights. Within 30 days, contacting the IRS to arrange payment, an installment agreement, or explore alternatives like Offer in Compromise, Penalty Abatement, or Innocent Spouse relief is crucial.
The subsequent letter, Letter 1058 (Final Notice of Intent to Levy), outlines the IRS’s intent to seize assets and delineates your appeal rights. Enclosed is a Collection Due Process hearing request form (CDP) that must be completed and submitted to the IRS within 30 days.
By submitting the CDP form, you initiate your appeal, providing personal details, tax periods under appeal, and relevant information either handwritten or typed electronically. Alongside the form, include a copy of the final notice letter to ensure the appeals office receives essential documentation.
Details necessary for completing the CDP form are typically outlined in the letter being appealed (Final Notice of Intent to Levy). It lists the relevant tax periods, whether related to a levy or a lien, which should match those in the final notice letter. Sign and file the appeal within the stipulated timeframe.
In preparation for the hearing, compile a comprehensive list of issues for discussion with the appeals officer. Collate completed forms and supporting documents pertinent to your case’s background facts. Commence gathering this information promptly to allow ample time before the scheduled hearing or settlement conference.
Should the hearing’s outcome be unsatisfactory, an appeal can be made to the Tax Court, followed by the US Court of Appeals and ultimately, the US Supreme Court. While these options provide negotiation leverage known as the threat of litigation, it’s essential to note that during appeals, the statute of limitations is tolled, halting its expiration.
Facing the IRS alone can be overwhelming. Don’t fight the IRS alone.
Schedule a risk-free consultation today and let Sterbick & Associates guide you through the appeals process!
