The Collection Appeals Program or CAP is one remedy available to taxpayer who have a variety of IRS issues. CAP hearings can be valuable resource in some circumstances and it is one option that we consider when taxpayers come into our Richardson, TX office with tax problems.
The right to a cap hearing is triggered by any of the following events:
- Notice of Federal Tax Lien
- Notice of Levy
- Notice of Seizure
- Denial or Termination of Installment Agreement
CAP hearings where created by Congress as a result of IRS abuse, and are procedural reviews. A CAP appeal can be used effectively if the system breaks down and the collection division has not followed procedure. Unlike a CDP hearing, a CAP appeal is not used to negotiate payments plans or Offers In Compromise. One example might be if a lien is placed against the wrong person and it can’t be rectified in collection.
A CAP Hearing is requested by filing form 9423. You are required to discuss the case first with collections and then with a collections manager before requesting a CAP hearing. Be prepared to explain why you disagree with collections and to offer a solution. One disadvantage of a CAP hearing versus a CDP hearing is that you cannot appeal the decision in Tax Court. However, a CAP hearing usually occurs much quicker than a CDP hearing. Typically, the taxpayer will be requested within 5 days of receipt of the Form 9423
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