Welcome to the Tax Tips and Insights series of First Response Resolution, LLC’s official blog! We are a specialty tax firm practicing right here near Medford in Southern Oregon. The focus of my practice is solving tax problems for individuals and businesses, IRS Representation of taxpayers, and representing taxpayers before their individual State Departments of Revenue. We offer our services online nationwide from the comfort of our client’s homes and will provide services on-site to businesses in our area upon request. Think of our firm as your Financial First Responders who specialize in saving troubled taxpayers. We help people who are struggling with tax problems get their lives back on track so they can focus on what matters most to them.
As we wrap up our discussion on the IRS Collection Process for now, we will highlight the ways in which taxpayers can defend their rights and challenge a position that the IRS has taken against them. We have covered the various ways in which the IRS pursues collection, including Federal Tax Liens, IRS Notices, Tax Levies of financial accounts and Asset Seizures. The IRS can also issue a summons for the taxpayer or third parties to appear before them or to provide information, they can assign a delinquent account to a Private Collection Agency, and the IRS can certify seriously delinquent tax debts to the State Department for action that will generally prevent a taxpayer from being issued a passport, prevent them from having a passport renewed, or even have their passport revoked. Seriously delinquent tax debt, according to the IRS, is legally enforceable Federal Tax Debt totaling more than $59,000 for which a Notice of Federal Tax Lien has been filed or a Levy has been issued.
When the IRS takes any of the previously discussed actions to enforce collections, taxpayers have certain rights that protect them and allow them to challenge the position of the IRS. Among these rights is the ability to Appeal a decision or collection action to the IRS Office of Appeals. This division is separate and independent of the IRS Collections Office that initiates the collections process and made the initial determinations. The Office of Appeals adheres to strict policies prohibiting certain communications with the IRS Collections office or other IRS offices and any such discussions with the other IRS offices will provide for an opportunity for the taxpayer to participate in the conference, provide written documentation to support the taxpayers case, and allow the taxpayer or their authorized representative to offer additional comment. The main options for appeals are under either a Collection Due Process (CDP) request or the Collection Appeals Program (CAP). With the CAP option, if you disagree with an Appeals decision, you cannot proceed to Tax Court.
A taxpayer can request a CDP hearing once they receive a Notice of Federal Tax Lien, Final Notice of Intent to Levy, or Notice of Jeopardy Levy and Right to Appeal. To request a CDP hearing, taxpayers complete and submit Form 12153, Request for a Collection Due Process or Equivalent Hearing, which must be submitted by the deadline contained in the notice sent to the taxpayer, typically 30 days from the date on the notice. If a request is not made within this 30-day timeframe, a taxpayer can still request an Equivalent Hearing within one year from the date of the notice, however, missing this 30-day deadline eliminates the taxpayer’s right to go to Tax Court. Requesting a CDP hearing with the Office of Appeals will suspend the collection actions and the Collection Statute Expiration Date (CSED) and the IRS is generally prohibited from seizing assets during this time. If an Equivalent hearing is requested, the taxpayer does not have Tax Court rights, but the CSED will continue to run.
These IRS procedures and rules can be complicated and intimidating, it is well advised to seek competent representation when dealing with the IRS. Most people would not go to court and face litigation without an attorney, and it is in the best interest of the taxpayer to engage a qualified representative to negotiate and coordinate these proceedings with the IRS on their behalf. If you or someone you know is in the midst of an IRS issue, contact me at either 541-293-8449, by email at zach@firstresponseirs.com, or through our website. We specialize in solving tax problems! We know how to defend taxpayer rights and will thoroughly investigate and evaluate your specific situation and consider ALL OPTIONS available to you. All discussions are kept strictly confidential, and we offer no obligation initial consultations of up to one hour.
Is your agency interested in having me speak to your team of realtors in person or over Zoom at one of your weekly sales meetings free of charge? I have a presentation developed to address the following:
- Taxation and your clients,
- Tax tips for saving on your own tax returns, and
- Tax Problem Solutions.
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