The IRS cannot engage in collections activities against you without an assessed tax in place first. Before an IRS tax assessment occurs, you, the taxpayer, have a right to be informed of any pending assessment. To facilitate your awareness of a pending IRS tax assessment, the IRS has a statutory system that issues you a Notice of Deficiency delivered by certified or registered mail. The Statutory Notice of Deficiency details what is being assessed and how it was calculated.

The IRS Statutory Notice of Deficiency is a vital due process function that plays a critical role in many IRS activities, such as appeals and tax litigation, and is a significant catalyst for enabling IRS collection activities to engage. If you receive an IRS Statutory Notice of Deficiency, it is critical to immediately assess and take action, especially while all appeal and rebuttal venues remain at your disposal. Getting a tax professional to help you initially may be your best option.

What is an IRS Statutory Notice of Deficiency?

A Statutory Notice of Deficiency is a legal determination by the IRS of a taxpayer’s tax deficiency. It is an official written claim that a taxpayer owes additional income tax (and additional penalties and interest). It is issued when the IRS proposes a change to a tax return because they found that the information reported on a return does not match their records. The IRS’s requirement to issue a notice of deficiency is stated in Internal Revenue Sections 6212 and 6213. These sections promulgate the rule that unless the IRS sends out a timely and valid notice of deficiency, any tax liability assessed by the IRS is invalid.

What Triggers the IRS to Issue a Notice of Deficiency?

External parties, such as employers, financial institutions, and brokers, report taxable transitions to the IRS. For example, when an employer issues a 1099-NEC form to a contractor, the employer also issues this information to the IRS. The same generally holds for when a broker issues you a 1099-B which reflects investment activities, it also has issued this information to the IRS. When these records are either missing or do not match what has been reported in your tax return, IRS will initiate a correction and or addition, which gets listed within the deficiency notice. To help avoid having the IRS make adjustments to your tax return, it’s crucial to double-check for any 3^rd party omissions or misreporting of your tax return before filing.

The IRS Statutory Notice of Deficiency Comes in What Forms?

The official name for a Statutory Notice of Deficiency is the IRS Notice CP2319A (or CP2319N): Notice of Deficiency and Increase in Tax. A Statutory Notice of Deficiency is often called an IRS 90-Day Letter, a Notice of Deficiency, or a Statutory Notice.

Depending up how the IRS determines the tax deficiency will determine whether a CP3219A Notice or a CP3291N Notice is used. Here are some clarifications the IRS uses to determine which form is applicable to use:

• CP3291N If the IRS did not receive your tax return and then prepared your return based on wages (W2s) and other income (1099s) reported by third parties, the IRS will issue the CP3291N. When the IRS prepares your tax return, this is referred to as a Substitute For Return (SFR). Although it may seem convenient that the IRS would do this for you, the outcome will not be in your favor since the IRS will not include any allowable credits or deductions during the processing of your return resulting in a higher tax than if you had it prepared. There are additional drawbacks to taxpayers when SFR returns are prepared. Also, the IRS will not prepare an SFR if you are due a refund. For more information, please see this blog, “The IRS May Prepare a Substitute for Return in Place of an Unfiled Tax Return“
• CP3219A If the IRS receives information that is different from what you reported on your tax return, the IRS will issue this notice. The change may result in an increase or decrease in tax. An omission of a form listed on your tax return will trigger this notice type.

What Information Is Provided within an IRS Statutory Notice of Deficiency?

The notice will provide the applicable tax year in question and the amounts of the proposed adjustments. There will be a listing portraying how the amounts were calculated. It is essential to verify the accuracy and validity of any proposed adjustments. It often comes down to providing missing information that could clear everything up. For example, if you were to receive a notice that states you owed taxes from a capital gain from the sale of your home, which was not reported on your tax return. The IRS had a 1099S which lists the amount of the proceeds from the home sale, as reported by the broker; however, it did not either list the basis of the property or any potential capital gain exclusion amounts you may be entitled to. Now, you are faced with a tax debt, penalties, and interest, none of which you would owe if correct information were provided.

In addition, there may be an accompanying IRS Form 5564, Notice of Deficiency Waiver. If you agree with the tax amounts listed within the deficiency notice, IRS provides this form for you to sign off on and send to IRS. Both spouses must sign if the deficiency notice is for a jointly filed return. Most importantly, do not sign this form if you disagree with the Notice of Deficiency! Make sure to understand what is being assessed. Just like in the example mentioned, there could be a solution to alter the outcome significantly. You have options to appeal! More on that later in this article.

When Is the IRS Not Required to Issue a Statutory Notice of Deficiency?

The IRS is not required to issue a Statutory Notice of Deficiencies under the following circumstances:

• When you file your tax return, the amount listed on the tax return is assessed by you; therefore, the IRS does not have to issue a Notice of Deficiency.
• When the IRS issues specific reportable transactional penalties such as Failure to File Penalty, Failure to Pay Penalty, and Trust Fund Recovery Penalty, among others.
• An IRS correction of a math error is where the IRS determines a tax deficiency resulting from a clear mathematical or clerical error reported on your tax return and then makes the correction without sending a deficiency notice. The IRS still has to notify you of the mathematical or clerical changes. If a taxpayer contests a math error notice within 60 days, IRC § 6213(b)(2)(A) provides that the IRS must abate the assessment. If the IRS abates the assessment, it must follow deficiency procedures before reassessing the tax. Taxpayers who do not contest a math error notice within 60 days lose the right to do so in court before paying. The IRS can use a Notice of Deficiency route for clerical and mathematical errors if it chooses to.

How Long Can the IRS Take to Issue a Statutory Notice of Deficiency?

The IRS can typically only issue a Statutory Notice of Deficiency during a tax assessment period for a particular tax. The tax assessment period the IRS uses is based of the Assessment Statute Expiration Date (ASED). The ASED occurs at the end of the period when the IRS can assess tax concerning a particular tax year. The ASED is calculated on the basis that an assessment of tax must be made within three years from the received date of an original tax return or three years from the due date of the original return, whichever is later. However, there is no assessment period if no tax return was filed or a fraudulent tax return was filed.

The three-year assessment period can be extended by:

• You request a Collection Due Process Hearing.
• You file a Bankruptcy Petition.
• You have applied for an Offer in Compromise.
• If you sign a waiver and consent to extend the assessment period (by signing Form 870, Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overpayment) (this is called a “Notice of Deficiency Waiver “).

If you have significantly understated the tax on a return, the assessment period can be extended from three to six years.

How Should I Respond to an IRS Notice of Deficiency?

You have several options for responding to an IRS Notice of Deficiency. These options include:

1. Pay the tax in the notice and close the matter.
2. Pay the tax in the notice and submit a refund claim.
3. File an offer in compromise.
4. Submit a petition with the U.S. Tax Court.
5. Petition the IRS to withdraw or rescind the notice of deficiency.

The IRS Statutory Notice of Deficiency, also known as the 90-Day Letter, gives you 90 days from the date listed on the notice to file a petition with the U.S. Tax Court.

It’s important to note that the 90 days begins as of the date listed on the notice, which represents when it was mailed and not the day you received it in your mailbox. If you petition for tax court, you must do so within 90 days of the notice date.

The 90 days are extended to 150 days if your address is outside the United States.

What Happens If I Did Not Receive My IRS Notice of Deficiency?

The IRS must send a statutory notice of deficiency to a taxpayer’s last known address by certified or registered mail. The last known address is generally the address that appears on your most recently filed and properly processed tax return unless the IRS is given clear and concise notification of a different

The courts will invalidate the notice if the IRS does not properly Notice of Deficiency.

For my IRS Deficiency Notice, Who Can File a Petition to Go to Tax Court?

You can file the tax court petition if you are listed on the Deficiency Notice.

What Happens When I File a Tax Court Petition?

Once the U.S. Tax Court receives your court petition, they will notify the IRS of your response to the IRS Notice of Deficiency. The IRS will place a hold on the assessment case and is prevented from issuing additional assessments for the same tax and period.

The IRS counsel will then file an Answer to your petition with the U.S. Tax Court. Often your case will get forwarded to the IRS Office of Appeals. If the case can be solved without going to tax court, the IRS will review the case and schedule a conference with you. The conferences are informal and are conducted by correspondence, telephone, video, or in-person conference.

On average, the IRS settles 70% of cases that go to appeals. Filing for U.S. Tax Court can have significant advantages. Knowing your taxpayer rights and the relative’s time frames to enact these rights is imperative. Do not let your rights expire do to non-action!

There may be some other settlement options available.

For additional information, please refer to the following blogs:

• “The Ins & Outs of Audit Reconsideration“
• “When You Can Pursue a Collection Due Process Hearing“
• “Appealing IRS Tax Determinations“
• “What Should I Do If I Receive an IRS Notice“

Get Trusted Representation For Your IRS Notice of Deficiency

To ensure that you align yourself with the best possible outcome, whether dealing with a challenging IRS Statutory Notice of Deficiency situation or seeking other forms tax debt relief, have an experienced tax attorney-CPA-EA provide the expert guidance to get you there. Call today (772-418-0949), or complete an online inquiry form for a free consultation with experienced IRS Notice of Deficiency Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC. He will handle your IRS Notice of Deficiency and any other IRS issue so that you can put this behind you and get on to doing the things that matter most.

One of the harshest activities the IRS can do is to enforce a levy against you.

If you do not pay your taxes (or make arrangements to settle your debt), and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in. For instance, the IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions). Or, the IRS could seize and sell the property you hold (such as your car, boat, or house).

How Does The IRS Notify You of a Levy? Can I Appeal?

When the IRS is going to levy your bank account or garnish your wages, they will send a Notice of Intent to Levy (IRS Letter 1058 or LT11) in the mail. IRS is required to do so under Internal Revenue Code Section 6331(d). The Notice will list your right to appeal the levy within 30 days of the date of this Notice.

What Are Some of the Reasons To Appeal an IRS Tax Levy?

Here are some reasons to consider appealing a tax levy:

• You want to dispute the tax liability for a legitimate reason, provided you have not forgone the opportunity to do so.
• You are no longer liable for the tax because the Collection Statute Expiration Date time frame has expired.
• You will suffer financial hardship if the levy is enforced.
• You want to pursue a form of innocent spouse relief.
• You will submit an Offer in Compromise seeking to negotiate for a lesser tax amount than you owe.
• You have automatic stay protection from bankruptcy.

Usually, when you timely file for a CDP Hearing, the IRS is statutorily required to abstain from levying your property during the hearing process. Utilizing this time may allow for arriving at an optimal tax resolution.

What are the Options to Use for Appealing an IRS Levy?

There are three ways to appeal an IRS Levy. These are the Collection Due Process Hearing, Equivalency Hearing, and Collection Appeals Program. Each should be used based on specific circumstances.

Collection Due Process (CDP) Hearing

The process for requesting an appeal is by submitting in writing for a Collection Due Process (“CDP”) hearing within the 30-day deadline listed on the Intent To Levy Notice. If you miss the deadline, you can still request an appeal through other procedures; however, you will not have all the options and advantages available under a CDP hearing, such as going to a tax court to dispute the decision. Once you request a CDP hearing, the IRS will stop collection action on your account. The clock will also stop ticking on the collection statute of limitations. The IRS generally doesn’t levy assets during the CDP hearing process unless the tax collection is in jeopardy.

You may dispute the tax liability at a CDP hearing unless you were already given this opportunity from receiving a Notice of Deficiency, which would have provided such an opportunity.

Which Notices Provide for Collection Due Process (CDP) Hearing?

Collection Due Process (CDP) is available if you receive one of the following notices:

• Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
• Final Notice – 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 Your Right to a Hearing
• Post Levy Collection Due Process (CDP) Notice

How to Request a CDP Hearing to Appeal a Levy

It may be prudent to call the number on your levy notice to negotiate a possible resolution to your tax situation before requesting a CDP hearing. Making such a request to the IRS does not toll the 30-day requirement to submit a written request to a CDP hearing.

To request a CDP hearing, complete and submit IRS Form 12153 – Request for a Collection Due Process or Equivalent Hearing or submit a written request containing the items reflected on Form 12153.

The CDP Hearing request must be postmarked within 30 days after the IRS Notice of Intent to Levy date. If you cannot make the 30-day CDP deadline, you can still request an Equivalency Hearing by using the same form and checking off box seven on the form. Be sure to mail the request to the address listed on the Notice of Intent to Levy. To fax this, you must call the number listed on the Notice to get the correct fax number to send it to.

Equivalency Hearing (EH)

As mentioned, an Equivalency Hearing (E) might be an appeal option if you missed timely submitting for a CPD hearing. You have one year from the CDP notice date to file. At this hearing, you will have the opportunity to appeal the levy; however, you will not have the chance to go to tax court if you disagree with the Appeal’s decision. In addition, the IRS can still pursue collection activities during this process, whereas this usually is not the case when getting a CDP Hearing. So it’s essential to be aware of the dates of the notices.

Collection Appeals Program (CAP)

The Collection Appeals Program (CAP) is another option to appeal an IRS tax levy. The CAP process has some additional variations over a CDP Hearing but does not contain some of the advantages of using a CDP Hearing. You can elect for a CAP hearing before the IRS provides a Notice of Intent to Levy. When a notice is issued, you can appeal by the deadline on your Notice, which is typically 30 days.

Under the CAP procedure, you cannot dispute the amount of your tax liability.

When Should You Use a Collection Appeals Program (CAP)?

You should use CAP if you are unable to use a CDP. Although you can request the CAP procedure before the Notice of Intent to Levy is sent, bear in mind that any issues decided using the CAP may not be appealed at a later CDP hearing. Before doing so, you must understand all the impacts of electing a CAP over a CDP.

A CAP also provides the opportunity to use after the IRS has levied the property; usually, you must do so within two years from the levy date. Although the CAP procedure can provide quicker determination than a CPD hearing, the CAP appeal determination can not be challenged in Tax Court. In addition, the CAP is used by third parties where the IRS has wrongfully levied their property.

If you are unsure which appeals method fits your situation, talk to a tax professional who can help you.

Which Actions Are Collection Appeals Program (CAP) Available for?

Collection Appeals Program (CAP) is available for the following actions:

• Before or after the IRS files a Notice of Federal Tax Lien
• Before or after the IRS levies or seizes your property
• Termination, or proposed termination, of an installment agreement
• Rejection of an installment agreement
• Modification, or proposed modification, of an installment agreement

The Process for Requesting an Appeal Using the Collection Appeals Program (CAP)

The CAP levy appeal process can be done in two ways, depending on your collection contact with the IRS. The contact could be where you are dealing with an IRS Revenue Officer (RO) or have just received an IRS Notification or phone call (no RO).

If the IRS Notification or phone call is your only source of contact with the IRS, you should call the number listed on the IRS Notification or provided to you from your IRS call. It may be possible to avoid an IRS levy by trying to negotiate a solution to your tax issue.

If you cannot agree, you can then ask to appeal the decision by speaking directly to their manager. Within twenty-four hours of making this request, a manager should contact you. If you cannot then agree with the manager, your case will be forwarded to an IRS Appeals Office. You will not have to submit a written appeals request.

When dealing with an IRS Revenue Officer, the attempt to appeal is initially made by requesting a conference with their Collection Manager/Supervisor. If this conference does not resolve the issue, inform them that you will be submitting IRS Form 9423 – Collection Appeal Request. The completed form gets set to the IRS Collection Office you are dealing with.

What Happens After Requesting an Appeal of a Levy

A timely request generally prevents the IRS from commencing levy activity while an appeals process occurs. Even once you have filed for an appeal, you still may have the option of discussing your case for a resolution with an IRS Revenue Officer. You can withdraw your case anytime, especially if you find a solution. Once you submit the Appeal, someone from IRS Appeals will reach out to set up the time and date for your appeals conference.

The Appeals Office will issue a determination letter upon the conclusion of your conference. Provide you requested a timely CDP request, you will have the opportunity to appeal the decision in Tax Court. For Eqivalent Hearing or CAP request, you will not be allowed to contest in Tax Court.

Who Can Represent You During an Appeal of a Tax Levy

You have the option of representing yourself during the appeals process. If you want assistance, the following individuals can represent you:

• Licensed Tax Attorneys
• Certified Public Accountants
• Enrolled Agents
• Members of your immediate family
• For a business, a corporate officer, general partner, or regular full-time employee

Get Trusted Representation for Dealing with IRS Levy Appeals

Obtaining professional advice from a dedicated tax resolution professional may be ideal if you’re considering appealing a tax levy. It would be best if you had professional answers you could count on. Call today (772-418-0949), or complete an online inquiry form for a free consultation with experienced Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC. He will provide trusted representation so that you can put this behind you and get on to doing the things that matter most.

For additional information, please see the following blog articles:

• “Appealing IRS Tax Determinations: When and How to Appeal IRS Collection Actions and Tax Assessments”

• ”Important Information About IRS Tax Levies”

It is essential to understand that the IRS audit and collection processes are about the IRS getting as much money as possible. In contrast, the IRS Tax Appeal process is about finding a settlement.

If you disagree with the outcome of an IRS audit or other collection process, you can appeal an IRS decision, typically if the determination letter provides appeal rights. Read on for more information about when filing an appeal should be considered.

What are the Benefits of Appealing an IRS Decision?

Many people do not appeal against an IRS decision because they do not think they will get a favorable outcome. Surprisingly, the actual odds of getting a favorable appeal are very promising since the tax reductions made by the IRS through appeals are approximately forty percent. Some of the benefits of getting an appeal include:

• Very minimal cost to request.
• Tax liabilities can be reduced or eliminated.

The appeals process may also extend the time frame for your taxes’ due date, thus providing more time to acquire the needed funds.

What are the Some Disadvantages of Appealing an IRS Decision?

There are a few disadvantages to initiating an appeal. One downside is the risk of an appeals officer uncovering previously missed tax liabilities, increasing the amount you owe. The other drawback is that penalties and interest on your balance continue to accrue during an appeal. If you do not win the case, you may owe more than you did before you appealed.

Employing an experienced tax attorney-CPA-EA who completely understands IRS appeals regulations and federal tax law will significantly enhance your ability to obtain a favorable outcome.

When Is It Ideal to File an Appeal With the IRS?

There are various reasons to file an IRS appeal. Although not an all-inclusive list, here are some of the common reasons for Appeal:

• Disagree with the penalty amount being assessed.
• Disagree with the IRS’s collection action, such as liens, levies, seizures, and installment agreement terminations.
• Disagree with rejection offers in compromise.
• Disagree with the findings of an IRS audit.
• Disagree with the amount of taxes the IRS claims you owe.

If you are experiencing any of these situations, raising an appeal may be an excellent option to pursue. You do not have to perform an appeal by yourself, especially since the process can be somewhat arduous and confusing. Hiring a tax attorney is an excellent way to address the matter, and if one does decide to go at it alone, one can solicit information from an IRS representative.

When Is It Not Appropriate to File an IRS Appeal?

It is not appropriate to file an IRS appeal in certain situations, such as:

• You have already signed a payment plan agreement with the IRS.
• If the issue stems from an IRS audit and you did not provide the requested information for the audit to the examiner.
• You filed an appeal after the allowable timeframe for that situation. The permissible time frame for appeals is listed within the IRS response. Typically, you are given 30 days from the date of the IRS correspondence.
• There was not an attempt made to work out the issue with the IRS revenue agent assigned to handle your case. The goal for IRS is to work it out first with the agent before an appeal is warranted.
• Your only concern is that you cannot pay the amount you owe. In this case, you could have other resolution options to consider.
• The last written correspondence from the IRS does not inform you of your right to an appeal. An example would be the correspondence you received from the IRS: a bill and no mention of appeals.

If you are unsure whether your situation allows for appeals or would be in your best interest to do so, consulting with a tax attorney may be the best way to obtain clarity for the best course of action to follow.

How Do I Appeal an IRS Collection Decision?

As mentioned, the IRS directs you to attempt to resolve the issue with the IRS office that initiated the collection action before going to the IRS Independent Office of Appeals. For example, if you want to appeal a collection decision result sent to you from an IRS unit, you must submit a written IRS Protest of the decision to that unit. If your issue is unresolved, your case will be sent to the IRS Independent Office of Appeals. As of this point, you can present your position and explain why you ascertain why the IRS has made an incorrect collection decision.

Instructions for requesting a conference with an appeals officer are provided in the letter of proposed tax adjustment. IRS uses Letter 950 – 30 Day Letter-Straight Deficiency to propose adjustments to employment taxes. It states that to request a conference with an appeals officer, the taxpayer must file either a small case request or a formal written protest with the contact person named in the letter. Whether you file a small case request or a formal written protest depends on several factors.

How Do I Make an IRS Protest?

The process begins by sending a written protest to the IRS; the address to do so will be provided on the determination letter. Typically, the protestor must be the taxpayer or the business from which the challengeable IRS determination was made. A qualified tax professional who has obtained power of attorney for that tax matter can also prepare and submit on behalf of the taxpayer.

What are the Types Of IRS Protest Available to Use?

There are two types of protest: Small Case Protest or Formal Protest. Either type will require you to provide detailed information to establish your position explaining why you disagree with the IRS determination. It is vital to draft carefully and decisively. This information will also become the basis for the IRS to establish your appeals case if you cannot resolve it at the IRS initial determination level. Ordinarily, you must send this letter to the IRS within 30 days of receiving your IRS decision notice. This date will be reflected in the notification letter.

Making a Small Case Request

A small case request is appropriate if the total tax, penalties, and interest for each tax period involved is $25,000 or less. If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed. The total amount includes the proposed increase or decrease in tax and penalties or claimed refund. Please note, S-Corps, Partnerships, Exempt organizations, and cases involving employee plans must always file a formal written protest, regardless of the tax debt.

To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree and the reasons it does not agree with them.

Be sure to send the protest within the time limit specified in the letter you received, generally 30 days.

Filing a Formal Protest

When a formal protest is required, it should be sent within the time limit specified in the letter. The following should be provided in the protest:

• Your name and address and a daytime telephone number.
• A statement that you want to appeal the IRS findings to the Appeals Office.
• A copy of the letter proposed tax adjustment.
• The tax periods or years involved.
• A list of the changes you disagree with and the reason for disagreement.
• The facts supporting your position on any issue that you disagree with.
• The law or authority, if any, on which you are relying.
• You must sign the written protest, stating that it is true, under the penalties of perjury as follows:
  “Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”

What IRS Appeal Types are Available, and When Should I Use Them?

Collection Due Process (CDP) Hearings

The IRS Collection Due Process (CDP) is a process that allows taxpayers to dispute IRS collection actions. CDP includes IRS determinations about tax liens, levies, and asset seizures. The IRS will send you a notice outlining your rights if you have a right to request a CDP Hearing.

You can present your case at a CDP hearing and explain why you believe the IRS’s collection action is incorrect. The IRS official will then determine your case.

You have 30 days to request a CDP hearing from receipt of the notice. Filing a timely CDP hearing request will stem any levy action until the process is completed. You can request a judicial review from the Tax Court if you disagree with the results of the CPD hearing.

If you miss the 30-day deadline, you have a year to request a CDP Equivalent Hearing. If you request within this time frame, the IRS won’t halt the levy action, and you will forgo the right to request a judicial review. You can request a CPD hearing by filing Form 12153 (Request for a Collection Due Process or Equivalent Hearing).

Collection Appeals Program

The Collection Appeals Program (CAP) can be used to appeal various types of IRS collection actions, including the following:

• Installment Agreement rejections, terminations, and modifications.
• Levies.
• Federal Tax Liens.
• Rejection of requests to return levied property.
• Asset and account seizures.

To initiate this appeal type, call the number listed on your notice or contact the IRS Revenue Officer dedicated to your case. You must also talk with an IRS collection manager and submit IRS Form 9423 – Collection Appeals Request. Before the call, ensure you have pertinent documents and details supporting your position.

How Do I Appeal a Tax Lien?

You can appeal the lien if you have received a notice of a Federal Tax Lien filed on your property. Depending upon your situation, several appeal options exist: Collection Due Process or Equivalent Hearing (use IRS Form 12153) or the Collection Appeals Program.

How Do I Appeal a Tax Levy?

You can appeal an IRS levy against your property. Depending upon your situation, there are several appeals options: Collection Due Process or Equivalent Hearing (use IRS Form 12153) or the Collection Appeals Program.

Once your form is received, it will be assigned to an IRS appeals officer. You can then present your case and explain why the IRS should not issue a levy. The appeals officer will determine your case. If unsatisfied with their decision, you can usually request a review.

How to Appeal a Rejected Offer in Compromise

You can appeal the decision if your submitted Offer In Compromise has been rejected. To initiate the appeals process, you must file Form 13711 (Request for Appeal of Offer in Compromise). You have 30 days from receiving the IRS rejection notice to file the form.

How to Appeal a Trust Fund Recovery Penalty

The IRS Trust Fund Recovery Penalty (TFRP) is a penalty that can be assessed against business owners or other individuals responsible for paying payroll taxes on behalf of a business. If you’ve been assessed the TFRP, you can appeal the decision.

To appeal, you must send a written protest to the address on Letter 1153 (Proposed Trust Fund Recovery Penalty Notification) along with a copy of the letter. You must explain why you are not responsible for the TFRP or why you disagree with the amount of the TFRP.

May I Go To Tax Court If I lose my Appeal?

If you lose your Appeal, you may be eligible to go to tax court. However, you may only file certain cases in Tax Court and at certain times.

Two of the most common Tax Court cases are appeals from increases in tax following an audit (known as a deficiency proceeding) and appeals from Collection Due Process hearings:

Deficiency proceeding. The IRS usually sends you a Notice of Deficiency (90-day letter) for additional tax assessed after the audit. That letter is often referred to as the ticket to Tax Court. You are entitled to appeal against the assessment to Tax Court and must do so within 90 days, or you lose the right (subject to some exceptions) to challenge a deficiency in Tax Court. Such appeals cannot be brought to Tax Court any time you desire, only within 90 days of mailing the Notice of Deficiency.

Collections Due Process appeal. For Collections Due Process proceedings that have first been appealed to the IRS Independent Office of Appeals, you may appeal those determinations to Tax Court after Appeals has issued a Notice of Determination. If you do not timely appeal the Notice of Determination to the Tax Court within 30 days of the Notice of Determination, you lose the right to appeal those issues at Tax Court.

Get Professional Tax Help with IRS Appeals

Remember, it could take several months for the entire IRS appeals process to be completed. Be prepared to engage in a lengthy process. In addition, the whole appeals process can be challenging and stressful to navigate alone. A knowledgeable and experienced tax attorney can help you decide which path will result in the best outcome for your situation. In any interaction with an appeals officer or tax court, presenting your records and documentation in the most organized fashion can significantly impact the ultimate resolution of the dispute. A knowledgeable tax attorney CPA understands the process of appealing an audit or taking a case to tax court and can employ the necessary strategy to obtain a favorable result.

Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC, can help you file an appeal and negotiate with the IRS. You don’t have to deal with the IRS on your own. He can help you get relief from your tax issues. For a free consultation, call 772-418-0949 or fill out the online inquiry.

IRS Tax Appeals Tax Attorney-CPA-EA Serving Port Saint Lucie, Fort Peirce, and Stuart.

Certain taxpayers are surprised that they owe additional income taxes yearly even though their employer withholds taxes from their weekly paycheck. Having an outstanding tax debt is not as uncommon as you think, and there are many reasons it could happen. About 24% of all Americans owe back taxes. If you’re among them, you know how nerve-racking it can be, whatever the amount.

Although sometimes it may seem that way, the Internal Revenue Service (“IRS”) is not out to maliciously target you. Since some of the tax code is confusing, it is easy to make mistakes; even the IRS makes them. It is essential to recognize this to remain calm when dealing with this situation.

Just getting a notice from the IRS can be unnerving. If you don’t agree with the IRS’s assessment of a tax owed or don’t understand the IRS’s position, the best approach is to write out your points and questions methodically. This purpose is to put your information and questions into a concise format to allow a conducive discussion with the IRS.

If you are responding in writing, include your name, social security or tax ID, and the notice’s reference number, which you can find in the upper right-hand corner of the first page of the notice.

Please remember that the goal is to resolve the issue quickly; how you engage the IRS personnel could assist or impair this. Your issue will be addressed by an individual and not a faceless careless entity. Being polite and cordial will make your issue more likely to be addressed and resolved.

If your situation entails owing an undisputed tax debt to the IRS and you cannot pay it, you have options. Ignoring the debt is never viable since the tax debt will not go away and will increase with additional penalties and interest. Eventually, your situation will be compounded by the IRS taking a more aggressive approach involving the issuance of liens followed by levies and or garnishments. You could even have your passport taken from you.

Dealing with the IRS in the same manner as described earlier to devise a payment arrangement known as an installment plan is a viable option. The IRS has several types of installment plans, each of which is deviated based on assessed tax amounts owed. The information-gathering requirement for each type varies as well.

Suppose you’re in a financial predicament where you cannot pay basic living expenses and the IRS tax debt. In that case, you may qualify for other options, such as being placed into a Currently Not Collectible Status (“CNC”), where the IRS will halt collection activities. In contrast, your financial situation remains as such. Under this plan, the ten-year Collection Statute Expiration Date (“CSED”) continues to run, and once you reach the CSED for an assessed tax, the IRS can no longer collect the debt, and it gets removed from collections.

Other options may include qualifying for a form of an Offer In Compromise (“OIC”), where there is a settlement agreement to pay the debt for less than the original amount. OICs are considered by the IRS when tax liability or collectability of the debt is in doubt. In other words, if they’re not sure about how much you owe or if they believe you might not ever pay, the IRS could settle for a type of OIC.

In addition, you may qualify for a Partial Payment Installment Agreement (“PPIA”) which allows for a lesser payment. This is like OIC consideration, where one cannot pay the entire tax balance owed before the CSED. In some cases, this is a better option and an OIC.

Regardless of the plan, you must comply with your tax return filings. Otherwise, you will be ineligible. Generally, six years is how far back you have to comply with filing your tax returns. In some cases, the IRS could require beyond that.

Most installment plans where full tax debt payment is to occur can be set up with the IRS without too much headache. However, if you are dealing with an OIC, PPIA, or CNC, it is highly recommended that you seek the help of a qualified tax resolution firm like Harmon Tax Resolution, LLC. You will deal directly with a multi-licensed Tax Attorney-CPA-IRS EA who will ensure your case is adequately represented. In addition, any required tax compliance work can be addressed as well.

Do you owe back taxes? Are you doing anything to fix the problem? You can have a free consultation directly with a multi-licensed Tax Attorney-CPA-IRS EA. Not taking action doesn’t solve the problem make the call today and sleep well tonight.

Just seeing a notice from the IRS in your mailbox can often evoke a wide range of internal responses from somewhere between concern and outright panic. Even though it feels natural for these types of reactions to occur, they are not always warranted. Each year the IRS sends millions of notices to taxpayers across the country, so you are not alone in seeing a notice appear in your mailbox. Here are some suggested steps to follow once you have received an IRS notice and if you are still concerned, contact a tax attorney-CPA for further assistance with dealing with the notice.

First, relax and breathe easily. It is tough to address any situation while under the duress of panic. Please do so if you need to step back for a minute before opening the IRS notice. Panic will only prevent you from thinking clearly and won’t help you resolve the situation. Once you feel calmer, proceed.

Please remember that the IRS sends notices for various reasons, ranging from a simple notification that your account needs additional information to a request for payment of back taxes. For example, during the Covid pandemic, the IRS sent notices to inform taxpayers of Economic Stimulus Payments to go out, which was helpful information. Just because you receive an IRS notice doesn’t mean a financial burden is heading your way.

So please do not disregard the notice; that will only compound the matter.

When you open the notice, please read the notice very carefully. Be sure to look for the notice’s specific instructions indicating how you can satisfy the inquiry. Also, please note the time the notice allows for the response. Sometimes, not responding by the deadline prevents certain defenses and appeals from being utilized. Also, if you need help from a tax professional, providing this information as soon as possible allows for proper and timely responses

If you find it is a correction notice, review the information contained compared to the information with your return. If you agree with the correction, there generally is no need to reply unless a payment is due. If you disagree, respond and explain the basis of the disagreement. In addition, be sure to include any supporting information or documents you believe are pertinent to this tax issue.

Just remember you are not alone. For answers to your questions, you can either reach out to the IRS by calling one of their offices for answers or contact a knowledgeable tax resolution firm.

At Harmon Tax Resolution, LLC, a knowledgeable, experienced tax attorney-CPA- IRS EA will provide guidance on properly addressing your IRS notice. Call today at 772-418-0949, or visit www.harmonassociates.net.