What Is IRS Pub. 4235: Collection Appeal Rights?
Understand your rights when facing an IRS collection action. Learn the critical differences between your appeal options and the long-term results of each choice.
IRS Publication 1660, “Collection Appeal Rights,” explains the formal opportunity for taxpayers to challenge certain collection actions the Internal Revenue Service (IRS) may take. This publication ensures individuals and businesses are aware of their rights when faced with enforcement measures for unpaid taxes.
Collection Actions Triggering Appeal Rights
The rights outlined in Publication 1660 are not available for all collection activities but are triggered by more serious IRS actions. A taxpayer will typically receive this publication when the IRS files a Notice of Federal Tax Lien or issues a final Notice of Intent to Levy. The lien notice, often a Letter 3172, is a public document that secures the government’s claim to a taxpayer’s property.
A levy notice, such as Letter 1058 or LT11, is a final warning that the IRS intends to seize assets, including bank accounts or wages. The inclusion of Publication 1660 with these notices ensures taxpayers are informed of their recourse when these collection tools are initiated.
Understanding Your Appeal Choices
The publication details two paths for appeal: a Collection Due Process (CDP) hearing and the Collection Appeals Program (CAP). The CDP hearing is a formal process that must be requested within 30 days of the date on the lien or levy notice. To initiate this, a taxpayer must submit Form 12153, “Request for a Collection Due Process or Equivalent Hearing,” to the IRS. This option allows for a review of the case and consideration of collection alternatives.
A unique aspect of the CDP hearing is the right to further appeal. If a taxpayer disagrees with the final determination from the IRS Independent Office of Appeals, they have the right to petition the U.S. Tax Court to review the decision. This right to judicial review is only available through the CDP process.
The Collection Appeals Program (CAP) is requested using Form 9423, “Collection Appeal Request,” and offers a more informal and faster alternative for resolving disputes. Unlike the CDP hearing, a CAP decision is final and binding on both the taxpayer and the IRS. This means there is no opportunity to take the case to court, and the trade-off for this speed is the loss of judicial appeal rights.