Here are a few tips for stopping IRS debt collection and achieving tax relief. The first thing to accomplish is contacting the IRS within 24 hours of any notification from the IRS to determine what stage of collection the IRS is in. Then ask for an immediate hold of any further collection action until you can get the proper documentation or resolve the IRS situation. If the agent in charge of the collection, being a field agent or automation collections agent is not willing to give us an extension, then immediately file an appeal that may be a CDP or CAP Appeal. Either of these IRS appeals stops all collection actions against the tax payer for a period no less than 30 days, and up to 6 - 7 months. This gives you the ability to have breathing room to begin negotiations.
There are two main methods used to appeal IRS collection actions. The first is a CDP appeal and the second is a CAP appeal. A CDP Appeal must be filed within 30 days of a final notice of intent to levy. This allows a senior technical advisor within the IRS to review the case. This means it is being taken from the collection division of the IRS which is far more aggressive concerning these matters. In most instances, you will receive much better results filing a CDP Appeal.
If you have failed to file in a timely manner, you always have the right to file a CAP appeal which is very rarely used in the IRS. Most IRS agents do not know what a CAP appeal actually is. We often pursue this tactic with the IRS.
If the IRS has not actually filed a wage garnishment or levy against the taxpayer, we immediately file aCAP appeal. This takes the case out of the hands of the collection division immediately and puts it into a technical advisor's hands. This is very important because a technical advisor is someone who has been with the IRS for many years and will approach things in a more detailed way and truly follow the guidelines required. ACAP appeal also puts the brakes on an agent filing wage garnishments and levies against an individual's payroll money. The crucial part of filing any of these appeals is that the taxpayer must be in full compliance with the IRS. This means that all tax returns are filed. Any tax returns that are not filed must be filed.