You may appeal the filing of an on your property using either the Collection Due Process (CDP) hearing or the Collection Appeals Program (CAP). Each program has slightly different requirements, so discuss your case with a tax attorney to determine which appeal method best fits your situation.
You only have the right to request a CDP hearing if you receive certain notices from the IRS. One of these is the Notice of Federal Tax Lien Filing.
The IRS must notify you of the lien filing within 5 days. You then have 30 days to request your CDP hearing. You lose some of your appeal rights if you miss this deadline.
The major benefit of the CDP hearing is that if you disagree with the final determination, you can appeal your case to Tax Court. You don’t have this right if use appeal using the CAP.
At the CDP hearing, you can ask for the lien to be withdrawn or propose a collection alternative. You can also request a lien discharge or a lien subordination.
You can also dispute the amount of your tax liability, but only if you haven’t had the chance to do so previously.
The CAP may proceed more quickly than the CDP hearing. You can request a CAP hearing if you receive a notice of federal tax lien, but you can also use it to appeal other IRS decisions related to liens.
Unlike the CDP hearing, you can appeal the following IRS actions under CAP:
- Denial of a lien withdrawal request
- Denial of a lien subordination
- Denial of a lien discharge
- Appeals filed by third parties who do not have CDP rights
You can use CAP either before or after the IRS files the Notice of Federal Tax Lien. You don’t have the right to appeal a CAP decision in Tax Court.
The method of requesting a CAP hearing varies depending on whether you have previously been in contact with a Revenue Officer. You may have to submit a request in writing, but in other cases you can just ask the appeal over the phone. Ask your tax attorney if you have questions about requesting the CAP hearing.
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