Overview
IRS collection appeals give taxpayers a structured way to contest certain collection actions (for example, a Notice of Federal Tax Lien or a Notice of Intent to Levy) and to request that collection be paused while the dispute is resolved. Two primary appeal avenues are Collection Due Process (CDP) hearings and the Collection Appeal Program (CAP). Both are handled outside the IRS’s regular collection staff by the independent IRS Office of Appeals (IRS Appeals). See the IRS for program details (IRS — Collection Due Process and CAP).
I’ve represented clients in dozens of collection appeals during my 15+ years as a CPA. In many cases, filing the correct appeal on time and submitting a clear financial package prevented enforced collection (wage garnishment or bank levies) and created breathing room to negotiate an installment agreement or other resolution.
Who can use an IRS collection appeal?
- Individuals and businesses who receive a formal collection notice from the IRS that triggers appeal rights (most commonly a Notice of Intent to Levy or a Notice of Federal Tax Lien).
- Taxpayers facing post-assessment collection actions where CDP rights apply or where CAP is offered.
Not every IRS action is appealable; the availability and type of appeal depend on the notice you receive and the timing.
Key deadlines and forms (what you must know)
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Collection Due Process (CDP): If you receive a Notice of Intent to Levy or a Notice of Federal Tax Lien, you generally have 30 days from the date of the notice to request a CDP hearing. Use Form 12153, “Request for Collection Due Process or Equivalent Hearing” to make that request. During a timely CDP request, the IRS generally must suspend the proposed levy or the enforcement of the lien until the Appeals Office issues a determination (consult the IRS for current rules).[IRS — Collection Due Process]
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Collection Appeal Program (CAP): CAP covers other collection disputes where CDP is not available. The CAP request uses Form 9423, “Collection Appeal Request,” or other instructions provided in the collection notice. CAP deadlines can also be short; follow the notice instructions closely. (IRS — Collection Appeal Program)
Always check the specific notice you received for the deadline and the form to file. Missing the deadline can limit remedies; however, some post-deadline options may still exist (see “If you missed the deadline” below).
How the process works — step by step
- Read the notice carefully. Identify the type of notice (lien, levy, jeopardy levy, etc.) and the appeal option stated.
- Choose the correct form (typically Form 12153 for CDP or Form 9423 for CAP) and complete it fully. Attach a cover letter that summarizes your requested relief—e.g., release of levy, withdrawal of lien, installment agreement, or offer in compromise.
- Compile supporting documentation: proof of income, current bank statements, list of monthly living expenses, copies of legal documents (bankruptcy filings, if any), and any documentation that explains why collection would create undue hardship.
- Submit the appeal to the address or fax number on the notice and keep proof of delivery (certified mail or tracked courier). If you are working with a tax professional, file Form 2848 (Power of Attorney) so the IRS can discuss the case with your representative.
- The case is assigned to an Appeals Officer. Appeals will typically ask clarifying questions and may propose alternatives, such as an installment agreement, filing an offer in compromise, or partial relief.
- Appeals issues a written determination. If you disagree with the determination and CDP applied to your case, you may be able to challenge the decision in U.S. Tax Court within 30 days of the determination.
What to include in an effective appeal packet
- A clear statement of the relief you seek (e.g., “Request to stop levy and set up an installment agreement for tax year 2021 balance of $X”).
- Completed Form 12153 or Form 9423 (as applicable).
- Financial documentation: pay stubs, profit-and-loss statements for self-employed taxpayers, bank statements, proof of fixed monthly expenses (rent/mortgage, utilities), child-care or medical expenses if material.
- Documentation of special circumstances: job loss, serious illness, identity theft, pandemic-related impacts, or bankruptcy filings.
- Any prior correspondence with the IRS collection agent and copies of the underlying tax notices.
Strong, organized documentation makes it dramatically easier for an Appeals Officer to evaluate your case and often speeds resolution.
Outcomes the Appeals Office may grant
- Stay or release of levy (temporary or permanent) while Appeals reviews your case.
- Withdrawal of a Notice of Federal Tax Lien (if withdrawal is appropriate under IRS policy).
- Approval of an installment agreement, partial payment plan, or an Offer in Compromise recommendation.
- Determination that the IRS’s proposed action was appropriate.
If Appeals rules against you, CDP cases typically allow a petition to the U.S. Tax Court. Non-CDP CAP denials usually leave you with limited administrative options and potential litigation paths — consult a tax professional for next steps.
Real-world examples (illustrative)
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Wage levy paused: A client in my practice received a Notice of Intent to Levy. We filed a timely Form 12153 with detailed monthly living expenses and recent pay stubs; the IRS suspended the levy pending Appeals review and later approved an installment agreement covering the balance.
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Bank levy reversed: A small-business client experienced a bank levy during a cash-flow slump. We requested a CAP review using Form 9423, supplied bank statements and a cash-flow forecast, and Appeals reversed the levy while we negotiated a payment plan.
These are common scenarios—timely filing and clear financial data are the most frequent reasons Appeals grants relief.
If you missed the appeal deadline
Missing the initial 30-day CDP deadline often removes the ability to seek a pre-collection court review, but you may still:
- Request a collection review through CAP if offered in the notice,
- Seek relief through the Taxpayer Advocate Service (TAS) for hardship cases, or
- File other collection remedies (e.g., submit an installment agreement request directly to the collection unit or consider an Offer in Compromise).
TAS can be particularly helpful when immediate financial hardship or systemic IRS delay is involved (see Taxpayer Advocate Service resources).
When to consider other programs
- Offer in Compromise (OIC): If you cannot pay the full tax liability and your Reasonable Collection Potential (RCP) indicates a lump-sum or periodic payment would be less than the total owed, an OIC may be an option. See our guide “When an Offer in Compromise Could Be the Right Move” for details and the documentation needed. ([When an Offer in Compromise Could Be the Right Move](
