The IRS collected $120.2 billion in unpaid assessments in fiscal year 2024 alone. If you’re facing IRS collection actions like tax liens, levies, or wage garnishments, you have the right to appeal. Filing an IRS collection appeal can stop enforcement actions and give you time to negotiate better payment terms or challenge improper collection decisions.
This guide walks you through everything you need to know about filing an IRS collection appeal in New York, including deadlines, forms, and strategies that can help protect your assets.
What Is an IRS Collection Appeal?
An IRS collection appeal is your right to challenge collection actions the IRS has taken or plans to take against you. The IRS offers two main appeal programs:
- Collection Appeals Program (CAP): This is the faster process for appealing specific collection actions. CAP cases are generally resolved very quickly by Appeals officers.
- Collection Due Process (CDP): This is a more formal hearing that provides broader rights, including the ability to take your case to Tax Court if you disagree with the Appeals decision.
Each of these programs can stop collection actions while your appeal is pending, giving you breathing room to resolve your tax debt.
Comparing Collection Appeals Program (CAP) and Collection Due Process (CDP)
Collection Appeals Program (CAP)
Can be used when: You are dealing with any of these IRS collection actions:
- Levy action (taken or proposed)
- Disallowance of taxpayer request to return to levied property
- Notice of Federal Tax Lien (filed or proposed to be filed)
- Rejection of Installment Agreement
- Modification of Installment Agreement
- Termination of Installment Agreement
- Seizure of property.
Ideal for: Fast resolution of specific collection disputes.
Required form: Form 9423 (Collection Appeals Request)
Benefits:
- Quicker resolution
- Halts collection actions during review
- Covers more types of collection actions.
Limitations:
- No court review option if you disagree with outcome
- Cannot dispute the underlying tax debt
- Appeals decision is final.
Collection Due Process (CDP)
Can be used when: The IRS informs you that you are entitled to ask for a CDP hearing. Such communication may be called “Notice of Your Right to a Hearing Notice” or “Collection Due Process Notice.” It typically comes with other notices such as Federal Tax Lien Filing or Notice of Levy.
Ideal for: Complex situations requiring comprehensive appeal rights.
Required form: Form 12153 (Request for Collection Due Process Hearing)
Benefits:
- Option to petition Tax Court if you are unsatisfied with the appeal outcome
- Ability to explore collection alternatives
- Opportunity to dispute underlying liability in certain situations
- Prevents levy actions during review.
Limitations:
- Longer resolution timeframe
- Must be filed within 30 days of CDP notification.
When Can You File a Collection Appeal?
Act quickly. The IRS sets strict, action-specific deadlines for filing collection appeals. Missing deadlines can forfeit your right to challenge the IRS’s actions.
An appeal should be submitted to the IRS if:
- One of the laws controlling one of the things you disclosed on your returns was improperly applied by the revenue service.
- The IRS made a decision about a collection action, fines, or rejected proposals based on false information.
- An unfair or incorrect decision resulted from the agency’s misinterpretation of a law.
Seek factual material and proof to support your case, regardless of the reason you are appealing to the IRS. If you’re not sure how to proceed, speak with a knowledgeable tax professional who can evaluate your case and determine whether an appeal is worthwhile given your circumstances.
Before filing an IRS tax appeal, you must also make sure that your tax issue is eligible for reexamination. This implies that it must be connected to any of the following:
- Tax liens
- Levies
- Audits
- Asset seizures
- Requests for penalty removal or reduction
- Installment payment agreement, termination, and adjustments
- Offers in Compromise
- Innocent Spouse Determination.
Complete Guide to Filing Your IRS Collection Appeal
Step 1: Determine Which Appeal Process to Use
Review your IRS notice, as it will specify which type of appeal is available. If you receive a Collection Due Process (CDP) notice (such as a Notice of Federal Tax Lien or Final Notice of Intent to Levy), you can request a CDP hearing by filing Form 12153. For other collection actions, like installment agreement rejections, levy actions, or seizures, the Collection Appeals Program (CAP) may be your best option, using Form 9423.
Step 2: Meet with Collection Manager (For CAP Only)
- Manager conference requirement: If you are appealing under CAP and have been working with an IRS revenue officer, you must first request a conference with their manager. This step is required before submitting Form 9423. At this conference, you must discuss with them in detail your disagreement with the collection action, and your proposed solution.
- If disagreement remains: If you disagree with the Collection Manager’s decision, you must notify the Collection office within two business days after the conference that you plan to submit Form 9423. The form must be received or postmarked within three business days of the conference, or collection action may resume.
- If no manager response: If you’ve requested for a conference but the manager does not respond within two business days of your request, you may proceed to submitting Form 9423. Note in it the date of your manager conference request and that you were not contacted. In this case, the form should be received or postmarked within four business days of your request.
Step 3: Complete the Appropriate Form
For CAP Appeals (Form 9423):
- Download Form 9423: You can download IRS Form 9423 directly from the IRS website.
- Complete all sections: Fill out all required fields, including your name, Social Security Number, contact information, tax type, periods being appealed, and the amount due.
- Section 14 – Collection Action(s) Appealed: Check the box(es) for the collection action(s) you are appealing, such as federal tax lien, levy, seizure, or issues related to installment agreements.
- Section 15 – Explanation: This is a crucial section. Clearly explain why you disagree with the collection action(s) the IRS has taken.
- Be specific about the facts or circumstances that make the action inappropriate.
- Attach supporting documents if available.
- Propose alternative solutions, such as suggesting a payment plan, offer in compromise, or another resolution you believe is fair and feasible.
- Attach additional pages if needed: If your explanation or supporting documentation won’t fit in the space provided, you may attach additional pages to the form.
- Signature: Sign and date the form. If you are represented by someone else (such as a CPA, attorney, or enrolled agent), attach a completed IRS Form 2848 (Power of Attorney).
For CDP Appeals (Form 12153):
- Download Form 12153: Taxpayers can download Form 12153, Request for a Collection Due Process or Equivalent Hearing, directly from the IRS website.
- Identify all reasons for disagreement: The IRS and tax law experts emphasize that you should clearly state all the reasons you disagree with the IRS’s collection action on the form. This includes disputing the amount owed, challenging the appropriateness of the collection action, or proposing alternatives such as installment agreements or offers in compromise.
- Include financial statements if requesting collection alternatives: If you are requesting a collection alternative (like an installment agreement or an offer in compromise), you should attach relevant financial statements or supporting documentation to demonstrate your ability to pay and justify your request.
- Submit within 30 days of the CDP notice date: You must submit Form 12153 within 30 days of the date on your CDP notice to secure your right to a hearing and to suspend most IRS collection actions while your appeal is pending. If you miss this 30-day window, you may still request an “equivalent hearing” within one year, but you will lose the right to petition the Tax Court if you disagree with the outcome.
Step 4: Submit Your Appeal to the Correct Office
Critical: Never send your appeal directly to the Appeals office. Send it to:
- The IRS office that took the collection action (for CAP)
- The address shown on your CDP notice (for CDP).
The collection office must review your appeal first before forwarding it to Appeals.
Step 5: Prepare Supporting Documentation
Gather documents that support your position:
- Financial statements (Forms 433-A or 433-B)
- Bank statements and asset valuations
- Medical bills or documentation of hardship
- Evidence that collection action was improper
- Proposed payment plans or settlement offers.
Critical Deadlines You Cannot Miss
- CDP Appeals: 30 days from the date of the CDP notice
- CAP Appeals (general): Two business days after the manager conference.
- CAP Appeals for Seizures: 10 business days after Notice of Seizure
- CAP Appeals for Installment Agreements: 30 days from denial or termination notice
- CDP Equivalent Hearing: One year if you miss the CDP deadline.
Missing these deadlines can eliminate your right to appeal or limit your options to an “equivalent hearing” without Tax Court review rights.
What Happens During the Appeals Process
Suspension of Collection Actions
When you file a timely appeal, the IRS generally stops collection actions until Appeals makes a decision. For CDP appeals, levy action is generally suspended for the tax periods you appealed.
Appeals Conference
Appeals officers are independent from the IRS collection division and are trained to find mutually acceptable solutions. Appeals statistics show that about 52.6% of Tax Court cases are settled at Appeals.
Appeals conferences can be conducted through in-person meetings, phone, video conference, or correspondence.
Alternative Solutions Appeals Can Approve
Appeals officers have authority to consider:
- Installment payment agreements
- Offers in compromise
- Currently not collectible status
- Lien withdrawals or subordinations
- Penalty abatements
- Innocent spouse relief.
Common Mistakes That Hurt Your Appeal
Missing Deadlines
The most common mistake is failing to file within the required timeframe. IRS deadlines are strictly enforced.
Not Proposing Solutions
Simply objecting to collection actions isn’t enough. You must propose realistic alternatives for resolving your tax debt.
Inadequate Financial Documentation
If you’re requesting payment plans or settlement offers, provide complete financial information upfront to avoid delays.
Filing With the Wrong Office
Sending appeals directly to Appeals instead of the originating collection office will delay your case and may jeopardize your appeal rights.
How a New York Tax Attorney Can Help
Filing an IRS collection appeal involves complex procedures, strict deadlines, and detailed legal knowledge. Attorney John D’Amato has over 29 years of experience helping New York taxpayers resolve IRS collection matters and protect their assets.
John D’Amato’s Track Record
John D’Amato has successfully represented countless clients in IRS collection appeals. His clients consistently report positive outcomes:
“John and his team were amazing. They are very thorough and efficient when they handled my case. When I had a question they responded quickly.” – Brian S.
“John and his employees handled my situation quickly. Kept in contact through everything and even got back more money than expected.” – Colin A.
“John D’Amato was extremely realistic and sincere. He explained everything and alleviated any worry I had going in… Within a few weeks my judgment was settled and I never had to step foot in court.” – Vasaliki
Why Legal Experience Matters in Collection Appeals
Appeals officers evaluate both the legal merits of your case and your financial circumstances. An experienced tax attorney can:
- Ensure you meet all deadlines and procedural requirements
- Prepare compelling arguments for why collection actions are inappropriate
- Negotiate realistic payment alternatives
- Present your financial situation in the most favorable light
- Navigate complex IRS procedures on your behalf.
John’s approach focuses on finding practical solutions that protect his clients’ assets while satisfying their tax obligations. As one client noted: “John’s ability to go through all the law and the paperwork without a hitch was a great relief to us.”
Take Action Before It’s Too Late
IRS collection actions can devastate your finances and disrupt your life. Bank levies can empty your accounts overnight. Wage garnishments can take up to 25% of your paycheck. Asset seizures can force the sale of your home or business.
The good news? Filing a timely collection appeal can stop these actions and give you the opportunity to negotiate better terms.
Don’t wait until the IRS takes aggressive collection action. If you’ve received any collection notices from the IRS, contact John D’Amato immediately to discuss your options.
Contact John D’Amato for Expert IRS Collection Appeal Help
John D’Amato, PLLC is a top-rated bankruptcy and IRS solutions law firm serving clients throughout New York. With nearly 30 years of experience and a track record of successful case resolutions, Attorney John D’Amato has helped hundreds of clients resolve their IRS problems and protect their assets.
Don’t face the IRS alone. Get the experienced legal representation you need to protect your rights and achieve the best possible outcome in your collection appeal.
Call (716) 703-9099 today for a FREE consultation.
John D’Amato personally handles many cases and offers flexible payment plans to make legal representation affordable. His clients consistently rate him as professional, responsive, and effective in resolving even the most complex tax problems.
Remember: IRS collection appeal deadlines are strict and unforgiving. The sooner you act, the more options you’ll have to protect your assets and resolve your tax debt on favorable terms.