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Category Archives: IRS Form 668(Y) Notice of Federal Tax Lien

A very bad side effect of tax liens filed due to owing back taxes

Debt-collecting machine | The Washington Post.

If you owe back taxes to the IRS or overdue tax to the state, you may be able to set up your own installment agreement.  

As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria.  Please contact irs back tax help.  Before you email me, please click on and read “About irs back tax help.”

From the article:  “no other tax lien purchaser in the District has been more aggressive in recent years, buying the liens placed on properties when owners fell behind on their taxes, then charging families thousands in fees to save their homes from foreclosure.”

A business that’s geared towards taking the final step executing a tax lien.  If you’re not sure you can handle a tax lien alone, don’t let it come to this.  Dealing directly with the state or IRS before a private party tries to take your assets is a better way to go.  The both have programs to solve back tax problems, but you must engage to prevent tax seizures.  Engage on your own, or hire someone to help with past due taxes.  Either way, action is better than no action.

 

IRS Interest Rates 3rd Quarter 2012 don’t change

The IRS has announced there are no changes to their interest rates for third quarter, 2012.  

Below is a link to the IRS Q3 2012 back tax interest rates.   effective 3/12/2012.  If you have questions about this review, please reference:  bp108.

As usual, If you like the tone of this writing, I would like to refer you to someone who meets irs back tax help criteria.  Please contact irs back tax help.  Before you email me, please click on and read “About irs back tax help.

 

“The interest rates announced today are computed from the federal short-term rate determined during April 2012 to take effect May 1, 2012, based on daily compounding.

Revenue Ruling 2012-16, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2012-26, dated June 25, 2012.”

“The rates will be:

  • three (3) percent for overpayments [two (2) percent in the case of a corporation];
  • three (3) percent for underpayments;
  • five (5) percent for large corporate underpayments; and

one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.”

Good news for those dealing with past due taxes for the IRS.  

How does an IRS Tax Lien affect Factoring?

How does an IRS Tax Lien Affect Factoring?

Your IRS Tax Lien is starting to get more attention

This is a review of CT Lien Services and the effect they may have on your business.  They tell lenders about your IRS tax lien filings.  If you own a business that factors, has mezzanine financing, or is dealing with a hard money lender, this company could negatively affect you if you owe the IRS back taxes.  If you have questions about this review please reference bp86.

As usual, If you like the tone of this writing,   I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

A growing trend against businesses who owe the IRS back taxes?

I normally would not have focused on this company.  However, with the 20/20 Tax Resolution spinoff, Tax Guard, it creates concern.  Owner of 20/20 Tax Resolution/Tax Guard Tells Lenders About Your IRS Tax Problems?

Now there are two companies that are focused on reporting your tax problems to lenders if you owe back taxes to the IRS.  Both companies can defeat a business’s efforts to correct a past due IRS problems.  If you have an IRS back tax problem that involves factoring you can read about them here:  Company tells lenders if you owe IRS back taxes.

It’s a Catch-22 situation.  If you could get the lending, you could fix your IRS 941 payroll tax problem.  If Tax Guard or CT Lien Services pry into the business tax situation, and expose missing payroll deposits or IRS Notice of Federal Tax Lien, IRS Form 668(y), they could derail your loan efforts. 

IRS Tax Lien Subordination and Factoring

CT Lien seems to be company that has an automated search for tax lien filings on a recurring basis.  This could put your factoring at risk if a tax lien is filed.  The IRS has provisions for subordinating a tax lien for factoring purposes every 45 days to allow factoring companies to continue providing cash flow, but in must be managed proactively and closely.  If you have questions about subordinating IRS tax liens for factoring, you must contact us.  I have never seen anyone accomplish a lien subordination for factoring on their own. 

If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com

This is why you Should Hire IRS Back Tax Help when Dealing with IRS Enforced Collections

Hire IRS Back Tax Help when Dealing with IRS Enforced Collections

Taxpayer sues and loses because they don’t know the IRS collection system.

This is a review of an IRS Appeals Summary Judgement.  You can learn from this Taxpayer’s mistakes.  If you have questions about this post, please reference:  BP83.

If you know you need to take action, read my post about “IF” you should hire IRS back tax help.  (You should not automatically.) titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.

As usual, If you like the tone of these reviews, I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

“Petitioner submitted some of the requested information but failed to submit bank statements. Because petitioner failed to submit the requested bank statement information, the Appeals officer was unable to accurately ascertain petitioner’s financial circumstances and, consequently, determined that she could not calculate the appropriate installment agreement terms or grant petitioner CNC status. In the absence of the requested information, respondent’s Appeals officer did not abuse her discretion in denying petitioner’s request for collection alternatives.”

Summary Judgment, Taxpayer Loses, IRS Denies Non-Collectable Status

I thought I was the only one who wrote really long sentences!  The full read is a little stuffy.  The short version is this:

  • Taxpayer owes 9 years worth of taxes. (Mistake)
  • IRS Revenue Officer files IRS Notice of Federal Tax Lien, IRS Form 668(y).
  • Taxpayer files an appeal, IRS Request for a Collection Due Process or Equivalent Hearing (IRS Form 12153).  Taxpayer doesn’t contest back taxes owed, asked for an IRS Installment Agreement.  (Side note:  As soon as the appeal was filed, it left the local collection office, and all business from this point forward was conducted via phone, or mail.  So if you’re thinking of hiring someone local, make sure they are comfortable handling a national collection effort.)
  • IRS, via letter, requested financial information to consider an installment agreement.
  • Taxpayer fails to provide requested financial information, and then asks to be placed on Currently Non-Collectable (CNC) Status (TC 530).  (Mistake)
  • IRS Appeals Officer makes another request to provide the financial documentation.
  • A few weeks later IRS Appeals denies Collection Due Process Appeal, which meant the tax lien could stay in place because the liability was valid.  
  • Then Taxpayer files a petition with the court requests suspension of collection action due to hardship.  (Mistake)
  • Court upholds IRS Appeals determination.  
  • Taxpayer has in no way improved his situation.  Collection action returns to the Revenue Officer and the taxpayer is back at step 1.  

Why are the requests of the taxpayer a mistake?  They are all the same mistake.  Taxpayer is trying to force a square peg through a round hole.  What the taxpayer wanted was reasonable, but he wanted a giant, bureaucratic collection agent to change its ways to conform to him.  You must be able to speak the “collection” language.

Taxpayer’s reluctance to turn over bank records really hurt him.  The IRS Revenue Officer has a duty to the taxpayers to perform due diligence on each past due tax situation.  Everything he wanted was achievable, (assuming no criminal intent,) but he didn’t know how to ask for it the right way because he lacked the experience in navigating the system.  

If you think you should hire a tax resolution expert, please read About irs back tax help.  If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.

Regards,

irs back tax help

IRS Collection Efforts Failing the Taxpayer and Violating Taxpayer Rights Part 2

Part 2 of the review of the Taxpayer Advocate report includes Substitute for Returns (SFRs), and the overuse of IRS Form 668 Notice of Federal Tax Lien.

All irs back tax help comments are in blue If you have questions about this post, please reference:  BP 75. 

If you know you need to take action about your IRS back tax problems, read my post about whether or not you should hire someone (You should not automatically) titled:  “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?before you do anything else.

As usual, If you like the tone of this writing, I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

Here is the link to the Executive Summary:  http://www.irs.gov/pub/irs-utl/irs_tas_arc2011_exec_summary.pdf

And here is the link to the full report: http://www.irs.gov/advocate/article/0,,id=252216,00.html

From the Executive Summary: 

  • “The IRS’s wholesale use of automated “enforcement assessments,” i.e., the automated Substitute for return (ASFR) program, has increased dramatically over the past decade, placing considerable drain on IRS collection resources, with questionable benefits for revenue collection and compliance.”
  • “as of March 2011, ASFR assessments accounted for 43 percent of the IRS’s potentially collectible accounts receivable.”

Increased dramatically is right!  IRS Automated Substitute for Returns filings have gone up 896% over the last 10 years.  An IRS Substitute for Return is when the IRS files a missing return for you, whether it is 941 payroll, 1040 income, or other.  They guess what you owe and then file a tax lien, which brings us to the next problem to consider:

  • “…despite these changes, the IRS filed 1,042,230 Notice of Federal Tax Liens in fiscal year (Fy) 2011 against 713,524 taxpayers.  Although the number of liens filed decreased by approximately 54,000 or five percent from Fy 2010 levels, the IRS continued to file most Notice of Federal Tax Liens based on a dollar threshold of liability, without human review of the need for the lien based on the facts and circumstances of the case.  As a result, the revised lien policies may not deliver the promised “fresh start” for many taxpayers who will grapple with the burden of Notice of Federal Tax Liens for years.”

We were really excited about “fresh start” policy and how it was supposed IRS tax lien filings when it came out early last year.  The behavior described here is supported by personal experience.  IRS Federal Tax Liens are still be filing well below the dollar threshold.  (Some tax liens were for such a small amount, the cost of filing exceeds the amount of the lien itself.)

  •  “A recent IRS focus group report ranked the Notice of Federal Tax Lien filing as the number one factor that affects a taxpayer’s economic circumstances and credit report, ranking even higher than foreclosure and bankruptcy.”

Again, this supports our experience.  The painful irony of a federal tax lien filing preventing lending to pay off the back taxes fails the common sense test on many levels.  A recent troublesome development that takes this a step further are companies that will check your IRS standing for lenders before IRS tax liens or levies are filed.  So your lender will be able to find out if you are missing filings or delinquent on payroll (941s), income (1120/1065), or other types of taxes.  Which could, in turn, deny lending to people who are trying to get said lending to take care of those very same taxes.  I reviewed this here:

http://irsbacktaxhelp.wordpress.com/2012/01/11/owner-of-2020-tax-resolutiontax-guard-tells-lenders-about-your-irs-tax-problems/

This is the end of part 2.  More to follow!  Our next review will include:  “The IRS’ offshore voluntary disclosure Program “bait and switch” may undermine trust for the IRS and future compliance Programs.”

If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.

IRS Back Tax Collection Enforcement Skyrockets over the last 10 years

IRS tax liens, levies, & IRS seizures have all gone through the roof in the last decade, what’s next? 

This post is a second review of the newly released information about the IRS Tax Gap.  This second review focuses on the increase in enforcement actions, including specific numbers on increase tax levies, tax lien filing, and seizures from 2001 to 2011.  If you have questions about this post, please reference:  BP #71.

As usual, If you like the tone of this writing, I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

Original irs.gov link and full text here:

http://www.irs.gov/pub/newsroom/fy_2011_enforcement_results_table.pdf

With a staffing increase of 11%, IRS collections are up 163% over the last decade

How did the IRS do that?  Automated collection efforts have boomed.  Expect to see this trend continue.  This includes collections (taxpayer owes back taxes, and repays it), examinations (audits), appeals, (denial of IRS appeals to be more specific), and document matching (i.e. Social Security and others).  The less face time a Revenue Officer spends with a taxpayer who owes back taxes, the more time the IRS Revenue Officer has to cover their assigned cases.  Eliminating travel time and face to face meetings speeds up the IRS collection efforts.  This is the reason national tax resolution companies are sometimes more successful than their local counterparts.  The national tax resolution companies are comfortable with the trend towards completing IRS related business by fax and phone.  The IRS gains from this because it allows them to cover ground more quickly.  The taxpayer wins when their tax attorney knows how to manipulate the system to get them what they need.  I have yet to meet a client that likes it when an IRS Revenue Officer comes into the business or home waving around their badge asking for the delinquent taxpayer.  And yes, they do that. 

While staffing has not grown dramatically, turnover has.  Many baby boomers are at the retirement age, so even though the numbers are not different, the faces are.  When the IRS hires people fresh out of school, or early in the professional careers, those people have a hard time understanding what it is like to make hard decisions, maintain a payroll, and employ others.  It is not that they are bad people, but lack perspective.  As a result, there is a systemic indifference that causes collection problems for the taxpayer and IRS both.  That’s an anecdotal observation, and I would love to hear other’s thoughts on it. 

Increase in IRS collection enforced actions; broken down by tax liens, levies, and seizures

  • 3,748,884 IRS levies occurred in 2011.  Those numbers include IRS bank and receivable levies.  It also includes IRS wage garnishments.  This is a 556% increase in IRS levies over the last decade.     
  • 1,042,230 IRS tax liens were filed in 2011.  That is 86,853 tax liens filed every month and a 245% increase over 2001’s numbers.
    • Don’t be surprised if the same Revenue Officer who told you they would not file a tax lien against you turns around and does it the following day.  Sometimes they have already filed the tax lien before they told you they would not.  It happens all the time.  If you see this kind of behavior, it is a warning as to the type of person you are dealing with. 
    • If you feel the IRS collection agent is being deceptive, you may be right.  Tax liens can be filed at the discretion of the Revenue Officer. 
  • 776 IRS tax seizures occurred in 2011.  This could be a house, business assets, or other types of real property.  This is a 332% increase in IRS seizures over 2001.
    • We consistently get the question “Can the IRS seize my house?”  They can, but rarely will the IRS seize your home.  There are so many other ways to satisfy tax debt.  If you feel the IRS is at this point, something is seriously wrong.  Communication or lack thereof is usually the culprit.  If you or your representation has allowed it to get to this point, it is time for a second opinion, pronto. 
    • Something that is hidden here is the other ways people lose their homes when dealing with the IRS.  Part of the IRS collection process is the IRS Revenue Officer tells you to get a loan.  They will not ask you if you can afford that loan.  So the taxpayer, thinking they have no other choice, gets a loan and then defaults it, losing whatever collateral they put up.  Don’t let this happen to you.  Another version of this is when the IRS bull rushes you into an installment agreement that you cannot afford.  So you make your installment agreement payment instead of your mortgage payment.  These are all problems that can be overcome with proper representation. 

IRS criminal investigations and prosecution recommended have increased by 146%

The IRS’ conviction rate is 92.7%.  The average sentence has increased from 18 month to 25 months over the last decade.

  • Of the 3,410 prosecutions the IRS recommended, 1,622 of them were tax and tax related; which is a 168% increase over 2001.  Over the same time period there was a 6% decrease in narcotics prosecutions for tax evasion.   It gives the appearance that the IRS is more focused on prosecuting taxpayers over drug dealers. 
  • Whether you want to go to court, or you are dragged into court, it’s to be avoided if there is a genuine liability.  The IRS wins the majority of the time and then you are charged their court fees on top of IRS penalty & interest. 
  • If you are concerned about a misstep in the IRS collection process, get representation so you can stay out of trouble. 

IRS back tax collection effort summary

They are doing more with more.  There has been a steady increase in IRS seizures, IRS bank & receivable levies, IRS wage garnishments, and IRS tax lien filings over the last decade.  With the added pressure from congress to close the tax gap, we can only assume their collection efforts will be more aggressive in tax year 2012 and beyond.  If you owe back taxes, do not wait for the IRS to take collection action.  The IRS automated collection system appears to be shooting first and asking questions later. 

Your call to action is this:  Whether you intend to handle this tax problem on your own or you hire someone, resolve to take action now.  Create a plan with goals, and meet those goals.  If you are missing filings, set yourself a schedule and meet it.  If you are getting certified mail, open it all and do what you need to.  If you’re thinking you need help, I would like to talk to about the best course of action to solve your IRS back tax problem.  

If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.

How does an IRS tax lien or IRS bank levy affect my credit?

All IRS Back Tax Help comments are in blue.  This post is about IRS Notice of Tax Lien (IRS Form 668) and the IRS Final Notice of Levy and their effect on your credit score.  If you have questions about an IRS bank levy, an IRS Federal or State Levy program action, how to get an IRS levy released or returned, Please search the blog for related posts.

If you know you need to take action, read my thread about whether or not you should hire someone (You should not automatically) titled “Owe the IRS Back Taxes?  When, Who, and How to Hire IRS Back Tax Help”  Before you do anything else.  

As usual,  If you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

How does an IRS tax lien or IRS bank levy affect my credit?  

Answer for IRS tax lien:  We have had our clients tell us that it drops the credit score from 50-100 points.  If you have a tax lien filed against you by the IRS, the IRS is required to send the “Notice of Federal Tax Lien” via certified mail to you last known address.  If you address is wrong, they are only required to attempt the delivery.  

Answer for IRS bank levy:  We have not heard of a drop in credit score after an IRS bank levy has occurred.  (If this has happened you should be seeking professional tax help.)  

Have there been any new changes to IRS Tax Lien Policies? 2011 Fresh Start Initiative

All IRS Back Tax Help comments are in blue.  This review is a further and more in-depth discussion on changes to the IRS tax lien filing policies including what the new dollar thresholds for filing an IRS tax lien, speeding up the time it takes to get a tax lien removed, and getting an IRS tax lien withdrawal once you’re in a direct debit IRS installment agreement.  

If you know you need to take action, read my thread about whether or not you should hire someone (You should not automatically) titled “Owe IRS back taxes?  When, who, and how do I hire IRS back tax help?”  Here’s the link:

http://irsbacktaxhelp.wordpress.com/2011/10/31/owe-the-irs-back-taxes-how-do-i-hire-irs-back-tax-help/

 As usual,  If you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help”.

Here is the link to irs.gov:

IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process

#1.  Increase in the IRS tax lien filing threshold

“The Fresh Start changes increase the IRS lien filing threshold from $5,000 to $10,000… The IRS will not retroactively apply the new $10,000 lien filing threshold and automatically withdraw a previously filed lien.”  We have seen no change to the IRS’ actual behavior in this regard.  We continue to see IRS tax lien filings well below these levels for both overdue 941 payroll tax as well as 1040 income tax.  After the date of this announcement, it is enforceable depending on circumstances.  

#2.  Requesting an IRS tax lien withdrawal after the tax lien has been released

“The IRS may now issue a withdrawal of a filed Notice of Federal Tax Lien after the lien has been released. If you wish to have the Notice of Federal Tax Lien withdrawn, you must request the withdrawal in writing. Please use Form 12277, Application for Withdrawal, (PDF). In item 8, Reason for requesting withdrawal, check box d, the best interest provision.”  Please note they say you “must” request the IRS tax lien withdrawal.  You cannot trust they will get this done on their own.  I have encountered more than one person who was astounded to find out the lien was in place years after they settled their IRS back tax debt.  Make sure you keep copies and send the application for tax lien withdrawal certified.  

#3.  Tax Lien withdrawal after entering into a Direct Debit installment agreement

“If you are a qualifying taxpayer and meet the eligibility requirements, you may have your lien withdrawn after entering into a Direct Debit installment agreement. Your request for lien withdrawal must be in writing. Please use Form 12277, Application for Withdrawal (PDF). In item 8, “Reason for requesting withdrawal,” check box b, the “entered into an installment agreement” provision.”  This is the biggest news in our industry in years.  The IRS used to never remove a tax lien unless it was their mistake, we proved the lien was poorly perfected, or paid in full.  This option is available for individuals that owe 1040 income tax, businesses that owe income tax (not over due 941 payroll tax) , and out of business companies with any type of tax.  

In order to qualify you must owe $25,000 or less, have everything paid off in 5 years or less or prior to the statute expiring, all your filings are complete, and you have never defaulted on a direct debit installment agreement previously.  

If you’re already in a regular IRS installment agreement, you are allowed to convert to a direct debit installment agreement as long as you meet all of the conditions above.  Here’s the IRS phone numbers you’ll need:  

Individuals (Wage & Salary Earners) 1-800-829-0922
Individuals (Self-Employed) 1-800-829-8374
Businesses 1-800-829-0115

As I’ve mentioned in other posts, if you owe $50,000 or more, or the IRS’ actions are not making sense, get some professional help.  Contact me and I will give you some guidance or encourage you to hire me depending on what will help you the most.  

How do / can I remove an IRS tax lien if I owe the IRS back taxes?

All IRS Back Tax Help comments are in blue.  This post is about changes to the IRS tax lien filing policies, how it’s easier for small business to get an IRS installment agreement, and how to get a tax lien removed or withdrawn.  

If you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “How do I hire IRS back tax help?”  Here’s the link:

https://irsbacktaxhelp.wordpress.com/2011/10/31/i-owe-the-irs-back-taxes-how-do-i-hire-irs-back-tax-help/

As usual,  If you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

Here’s the original irs.gov link with the full text:  http://www.irs.gov/businesses/small/article/0,,id=239094,00.html

On February 24, 2011, the Internal Revenue Service Commissioner announced an initiative to help people get a fresh start with their tax liabilities. The changes include:

  • Adjustments to IRS Lien Policies
    • Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens  This is a claim that we have not seen change at the ground level.  We are still seeing low dollar tax liens being filed for back taxes well below the IRS stated threshold.  
    • Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill  Marginal success here.
    • Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement  This is only for 1040 income tax below a certain dollar amount.  Click through for exact details.  
  • Creating easier access to Installment Agreements for more struggling small businessesaka In-Business Trust Fund Express Installment Agreement.  Must owe less that $25,000 and must have it paid off in less than two years or prior to the statute expiring.  Here is the number to set it up: 1-800-829-4933.
  • Expanding the streamlined Offer in Compromise program to cover more taxpayers

All of these changes are now enforceable.  If you can’t make it happen, contact me to remove the guesswork.  

What are my IRS lien / levy collection appeal rights?

All IRS Back Tax Help comments are in blue.  This post covers the different kinds of IRS appeals that can be used to halt enforced collection action such as IRS tax liens and IRS bank levies.  Discussion of Collection Due Process Appeals, (IRS Form 12153), the IRS Collection Appeals Program (IRS CAP), and IRS Equivalency Hearings.

If you know you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “How do I hire IRS back tax help?”  Here’s the link:

https://irsbacktaxhelp.wordpress.com/2011/10/31/i-owe-the-irs-back-taxes-how-do-i-hire-irs-back-tax-help/

As usual,  If you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

http://www.irs.gov/pub/irs-pdf/p1660.pdf

 1.  IRS Collection Due Process Appeal.  CDP (IRS Form 12153) This is delivered with the following:

  • Notice of Federal Tax Lien – IRS Form 668(y), which damages your credit and lays claim to all assets owned by the SSN/EIN.
  • Final Notice of Intent to Levy – IRS Form 668 (a)(w), which means you have 30 days from the date of the letter before assets, accounts, and receivables are exposed to seizure.  
  • Notice of Jeopardy Levy – IRS Letter 2439, which means assets, accounts, and receivables are exposed. now

2.  Collection Appeals Program.  CAP  (IRS Form 9423) aka Collection Appeal Request.  This can be filed for most IRS lien and levy actions, however, be very careful in pursuing this option.  If you file a CAP, you cannot proceed to court.  You also cannot challenge the existence or amount of your tax liability.

3.  IRS Equivalency Hearing.  This is used if you’ve missed your deadline for the IRS Collection Due Process Appeal described above.  The same form, (IRS Form 12153) is used to create this type of appeal.  Please note that this type of appeal does not halt IRS enforced collection action, nor does it stop the collection statute.  Also, this prevents you from proceeding to court.    

The bottom line for all of this is that it’s tricky, and people aren’t always aware of what they are committing to or missing.  If you are receiving IRS tax liens or a Final Notice of Intent to Levy, you had better learn these options or get representation immediately.  You can prevent negative actions from the IRS, but you’ve got to take action in a timely fashion.  Otherwise, these always get worse before they get better.  Don’t let the IRS choose your actions for you.  Be proactive.  

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