St. Louis MO: IRS Collection Due Process. What a relief it is!

Education & Training with Arch Tax Resolution

I represent taxpayers in the greater St. Louis area and the state of Missouri. If the IRS is breathing down your neck and you have received notification that they are preparing to file a lien or levy your assets all in not lost. Prior to 1998 taxpayers who owed the IRS didn't have a chance. There was no appeal, no audit reconsidertion and no United States Tax Court rights. The collection division of the IRS could do whatever they wanted to when it came to levying you wages and assets.

Finally Congress decided for a lack of better terms that the IRS methods of collecting money were abusive. Many people called it harassment. There were a few people who jumped out of buildings to say the least. 1998 was the year of change. The IRS was restructured and in the IRS ways reformed. 

Collection Due Process (CDP) rights were created for all tax payers. Now taxpayers must be notifed bofore enforced collection action can take place.

When a taxpayer exercises their CDP rights good things happen.

* Collection activity ceases.

*The case is forwarded to an Appeals Officer for review.

* A taxpayers ensures they have the right to go to the United States Tax Court.

Unfortunately only 3% of all tax payers take advantage of there appeal rights . That's right only 3%. Few taxpayers and tax practiioners ever request a CDP hearing. This is a huge mistake made by tax practitioners and taxpayers who don't understand how the process works.

Collection Due Process. A taxpayer is given the opportunity to invoke CDP appeal rights whenever either a Notice of Federal Tax Lien ("NFTL") is filed or when the IRS issues a final notice with the intention to levy assets of the taxpayer. Once in receipt the taxpayer has 30 days to request the CDP hearing with an Appeals Officer, commonly referred to a Settlement Officer. The IRS Form 12153 is used to request the Collection Due Process Hearing or an Equivalent Hearing which is used if the original request for a hearing has expired.

Once recieved all enforcement action is put on hold on the tax periods in question that are to be levied. Other tax debts where appeal rights expired are still open to collection enforcment.When the case is assigned to a settlement officer the taxpayer will recieve notice that there request has been recieved and a letter of instrucion of what infomation is required and a date and time of the hearing. Most appeal hearings are done by phone.

Here is what taxpayers need to know:

1. Any unfiled returns must be filed prior to hearing.

2. You must be in compliance regarding current tax payments.

3. Financial information must be provided via (Form 433)

4. The IRS expects a proposal. What does the taxpayer want?

If you or someone else is having IRS issues please feel free to call me @636-397-2759 or email me 



                                                                        Arch Tax Resolution

                                                                         620 S. Benton

                                                                        St. Charles, MO 63301