What Is A Collection Appeal Program (CAP)?A Collection Appeal Program (CAP) request is an IRS Appeal available to taxpayers. A CAP may be used to protest an IRS action before or after it has taken place, and it's usually used in the following situations:
- Before the IRS files a lien or a levy;
- Before the IRS levies funds or seizes assets;
- If the IRS does something it shouldn't, like sending a levy to your bank account before issuing a Final Notice of Intent to levy, or sending a levy to your employer to garnish your wages while a pending Installment Agreement is in place;
- Termination of your Installment Agreement;
- Rejection of your proposed Installment Agreement.
How Do I Request a CAP?Your CAP request must be in writing on IRS form 9423. However, before you submit your CAP request, the IRS prefers that you try to resolve your dispute with an IRS Collections Manager first. If you aren't able to reach an agreement with a Manager, submit your CAP within two days of your discussion with the Manager. Or, if you are unable to reach a Manager, submit your CAP to the Revenue Officer assigned to your case, or via US Mail to the address on the corresponding IRS notice.
What Can I Expect in My CAP Hearing?Most CAP Hearings are informal and held via telephone conference. Appeals will determine whether or not the IRS took the correct legal steps regarding the action that has been appealed. The Settlement Officer from Appeals that is assigned to your case will go over the facts and documents you've presented, and will compare them to the IRS' records in an effort to resolve your dispute.
Be prepared to resolve your dispute in one phone call. You can expect to be contacted within 4 or 5 days after the IRS receives and processes your CAP.
What else should I know about CAPs?You will not be given the right to appeal the IRS' CAP decision to tax court. The Appeals decision is final for you and the IRS. See IRS Publication 1660 Collection Appeal Rights for more information.