IRS Tax Debt - Do You Want the Collections to Stop? You Have the Right to "Collections" Due Process

Fast Solution: You can stop the IRS Collections process. As you're all well aware, the IRS has the power to ruin your life with their Tax Liens, Levies, and Seizures. If you can prove that the IRS is in the wrong, you are entitled to a hearing. This is known as the Collections Due Process.

I don't agree with the amount the IRS says I owe. Will Appealing stop the Levy?

That depends. You have to make sure you qualify for an appeal. Read Publication 1660 "Collection Appeal Rights" or consult with a professional to make sure you qualify before going through with the process. If you win, then the Levy action will stop.

I just got Notice CP504. It says "Urgent!! We intend to levy Certain Assets." Can I still Appeal and stop the levy?

No. Your case is closed. The IRS has already determined how much you owe at this point, so there's nothing to Appeal. But you do have options for getting your case reopened so you can appeal:

-Pay the amount due in full and file a Claim for Refund. Even if the IRS disallows your claim, you'll have the right to appeal

-Request an Audit, following the instructions in Publication 3598

-File an Officer in Compromise (Form 656), Doubt as to liability

And remember, the IRS cannot levy you with just this notice. They must first file a formal intent to levy. And that will be the next letter you get. So act fast and find a solution. If you can't appeal, find a way to pay the debt off.

I know I qualify for a Collections Due Process Hearing. Now what do I do?

First, you have to complete Form 12153 "Request for a Collection Due Process or Equivalent Hearing." You can't leave anything out. And make sure you list ALL your reasons for disagreeing with the IRS. Include any documents that proves your case. Then send the Form to the same address on your Lien or Levy Notice. If no one gets back to you within 30 days, consider getting professional help and resubmitting the application.

Quick Tip: Does this whole process seem too formal for you. There's another solution you can try. The IRS offers the "Collections Appeal Program" as an alternative to a hearing. It's a quicker and easier process. But watch out, if you disagree with the appeals decision you will not be able to go to court.

Now You Have The Smoking Gun...Use it!