IRS employee discusses how the Appeals Division of the IRS handles disputes arising from the collection of unpaid taxes, penalties and interest. Specific topics include: role of Appeals, Collection Appeals program (CAP), Collection Due Process (CDP), Offers in Compromise (OIC) and Trust Fund Recovery Penalty (TFRP).

Tax Appeals is a way to resolve your IRS problems within the IRS without having to take your case to a court of law. The Appeals Division of the IRS is an impartial, division within the IRS that will give your case a “fresh look” in the review of government findings and conclusions that may have been asserted against you. ┬áThe Appeal process is used in those cases where you have been unable to resolve your tax problems with the IRS through the normal channels.

There are generally four (4) different general procedures for appealing collection actions:

  1. Collections Appeals Program – this is often used to appeal various collection actions such as a tax levy, a federal tax lien, property seizure, wage garnishments and the denial or termination of an installment agreement;
  2. Collections Due Process or Equivalent Hearing – this is often used where you do not agree with with a federal tax lien or a notice of intent to levy assets filed by the IRS;
  3. Offers in Compromise – this is often used where the Offer In Compromise may not have been previously accepted and new information or clarification of information may exist;
  4. Trust Fund Recovery Penalty – this is used where an employer, or responsible person, fails to pay employment taxes

The use of the Appeals process does not stop penalties and interest that may apply.