Collections Matters Not Going Your Way? Consider an Appeal.
“I am in the middle of a collection matter with a local Revenue Officer. Right now she is asking me to pay more money than I am able to? What options do I have?
Sometimes the IRS collection division [either through Automated Collections (ACS) or with a local Revenue Officer (RO)] can make settlement difficult.
Sometimes this is based on what is in your file (typically the level of income or your assets) and sometimes based on the fact you are dealing with a collector. Negotiations can be nerve-racking, time-consuming and often there is a lack of understanding of the process.
Consider getting the case out of collections by an Appeal. You will then be dealing with what is called a Settlement Officer.
Settlement Officers are independent of IRS Collections. Secondly, they have no power to levy or seize you property.
How to get there?
You will need to file a Collection Due Process Appeal (CDP) in response to an IRS Final Notice of Intent to Levy. During a CDP, a Settlement Officer is able to review all collection options for you over property and possible seizure, such as an offer in compromise, installment agreement, or currently uncollectible status.
This review is completely independent of Collections. Collections have no influence in the Settlement Officer’s decision. You will have the opportunity to make your case in a hearing. Any errors made in the hearing that violate what is called the abuse of discretion standard can be reviewed by the United States Tax Court (USTC). No appeal like this exists when dealing with IRS Collections.
A CDP will need to be filed within one year following the Final Notice of Intent to Levy (Notice). Only appeals filed within 30 days of the date of this Notice qualify for USTC review.
If you are unsure if you have CDP rights get a copy of your account transcript for the year or years and the Notice date will be on the transcript.
When negotiating with the IRS, you don’t have to be wracked with fear and anxiety. Used your procedural rights to appeals. You can level the playing field, and protect your assets. Consider a Settlement Officer as part of your collection answer!