The IRS Collection Appeals Program (CAP)

CAP covers a broad range of actions, including: IRS Publication 1660 lists every action covered and the procedures for each.

• A proposed or actual levy or seizure.
• A filed or proposed notice of federal tax lien, and denied requests to withdraw, release, subordinate or discharge a lien.
• A rejected, modified or proposed-for-termination installment agreement.
• Disallowed requests to return levied property.

For most CAP appeals, you first ask to speak with the collection employee's manager and explain why you disagree. Many disputes end here. If the manager doesn't resolve it, you can request CAP. For actions by a revenue officer, you generally file Form 9423, Collection Appeal Request, with the revenue officer's office; for Automated Collection System cases, the manager conference and request can often be handled by phone.

CAP deadlines are measured in days, not weeks. For liens, levies and seizures, Publication 1660 requires the request to be submitted within a few business days after the manager conference. For a rejected installment agreement, you generally have 30 days after the rejection to request CAP review; for proposed termination, the deadline is shorter. Check Publication 1660 and your notice for the exact timeline in your situation, and file as soon as possible.

For appeals involving installment agreement rejection or termination, the IRS generally can't levy while the appeal is pending and for 30 days after the rejection or termination. For other actions, the IRS will usually stop the action under appeal while CAP considers it, unless collection is at risk. Unlike CDP, a CAP request doesn't suspend the collection statute.

An Appeals Officer reviews the case, usually by phone or correspondence, and typically decides quickly — often within days of receiving the file. Appeals considers whether the action was appropriate under the facts and IRS procedures. The decision is binding on both you and the IRS, and you can't seek Tax Court review of a CAP decision.

| | CAP | CDP | |---|---|---| | When | Before or after many actions | Only after specific notices | | Deadline | Days after manager conference (varies) | 30 days from notice | | Covers rejected/terminated plans | Yes | Only as part of levy/lien appeal | | Can dispute underlying tax | No | Sometimes | | Court review | No | Yes, Tax Court | If you've received a final notice of intent to levy, a CDP hearing usually offers stronger protection. CAP is valuable when CDP isn't available or has passed.

CAP can't consider whether you owe the underlying tax, can't review a rejected Offer in Compromise (those have separate appeal procedures), and can't address trust fund recovery penalty liability determinations. It's a review of collection decisions only.

Suppose the IRS rejects your request for a $300-a-month installment agreement on a $70,000 balance because it believes you can pay $650 based on your financial statement. You disagree because the IRS disallowed documented child care and medical costs. You ask to speak with the manager, who won't change the decision, so you file Form 9423 within the deadline with copies of the bills. An Appeals Officer reviews the expenses and either upholds the rejection, approves your figure or sets a payment in between. Whatever Appeals decides is final, so put your strongest documentation in the first request.

1. Explain specifically which action you disagree with and why.
2. Propose a solution, such as a payment plan amount or lien subordination.
3. Attach financial information that supports your position.
4. Make sure all returns are filed and current taxes are paid.
5. Keep copies and note dates of every conversation.