What IRS Form 9423 (2020) Is For
IRS Form 9423 (2020) serves as an official document for taxpayers who wish to challenge IRS collection actions through the Collection Appeals Program (CAP). It allows individuals and businesses to request a review by the IRS Independent Office of Appeals, which operates separately from the Internal Revenue Service’s Collection Division. By filing this collection appeal request form, taxpayers can obtain a fair and timely review of disputes related to liens, levies, and rejected installment agreements without having to involve the Tax Court.
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When You’d Use IRS Form 9423 (2020)
Taxpayers can use this form when they disagree with specific IRS collection actions or decisions that affect their tax balance or property.
- Federal Tax Lien Filing: Taxpayers may file Form 9423 to appeal the filing or denial of withdrawal of a federal tax lien related to a particular tax period.
- Levy or Property Seizure: Individuals can challenge IRS actions, such as bank account levies or property seizures, when they believe the collection action was not appropriate.
- Installment Agreement Rejection or Termination: The form may be filed when the IRS rejects, modifies, or terminates an existing installment agreement that affects ongoing payments.
- IRS Collection Actions by a Revenue Officer: Taxpayers may request an appeal if an IRS revenue officer initiates collection actions that appear excessive or improper.
- Disallowed Return of Levied Property: Form 9423 can be used to appeal the IRS’s denial of a request to return levied property under the rules of the Collection Appeals Program.
Ensure your representative can handle all IRS communication during your appeal by submitting a Power of Attorney for IRS appeals cases.
Key Rules or Details for 2020
The 2020 version of IRS Form 9423 follows several essential rules that taxpayers must understand before submitting their appeal.
- Independent Appeals Review: Each case is reviewed by the Independent Office of Appeals, ensuring the decision is made without influence from the IRS Collection office.
- Automatic Pause of Collection: A timely appeal under the Collection Appeals Program generally pauses IRS collection actions unless the IRS believes the tax debt is in jeopardy.
- Final and Binding Decision: Once Appeals issues its decision, it becomes final and cannot be appealed to the Tax Court, making it essential to present all arguments clearly and thoroughly.
- Appropriateness Standard: The appeals process focuses on whether the IRS action was appropriate under the tax code, policy, and procedures rather than questioning the underlying tax liability.
- Representation Rights: Taxpayers may represent themselves or authorize a tax attorney, certified public accountant, or enrolled agent to handle the appeal process on their behalf.
Monitor your IRS collection status and payment history using our IRS Account Transcript Service for taxpayers in appeal.
Step-by-Step (High Level)
The steps for filing IRS Form 9423 (2020) depend on whether the case involves a revenue officer or automated IRS correspondence.
- Request a Managerial Conference: Contact the IRS employee or revenue officer handling your case to schedule a conference with their collection manager.
- Discuss the Dispute: Explain your disagreement and proposed solution directly to the collection manager, aiming to resolve the issue before escalating it to the Appeals department.
- File the Collection Appeal Request: Complete IRS Form 9423 with full details in Block 15, sign and date the form, and submit it to the IRS collection office within the required deadline.
- Collection Review and Forwarding: The collection office verifies your appeal for accuracy and eligibility before forwarding it to the Independent Office of Appeals for evaluation.
- Appeals Conference: An appeals officer reviews the appeal form and supporting documentation, then schedules a conference—typically by telephone—to discuss your case.
- Appeals Decision: The appeals officer issues a written determination stating whether the IRS collection action is sustained, modified, or reversed based on the findings of the review.
If your appeal is denied and the tax debt is unaffordable, see if you qualify for the IRS Offer in Compromise program.
Common Mistakes and How to Avoid Them
Many taxpayers make errors that delay or weaken their appeals; understanding how to avoid these issues helps ensure a smoother CAP process.
- Missing Filing Deadlines: Always file IRS Form 9423 within the required timeframe to maintain your appeal rights and prevent the IRS from resuming collection actions.
- Skipping the Managerial Conference: Complete the mandatory conference with the collection manager before filing, as Appeals will reject your form if this step is skipped.
- Incomplete Explanation in Block 15: Clearly state both your disagreement and proposed resolution to strengthen your appeal and demonstrate a reasonable alternative solution.
- Sending the Form to the Wrong Office: Submit the form to the IRS collection office listed on your IRS notice; sending it elsewhere causes unnecessary delays in processing.
- Lack of Supporting Documentation: Attach all relevant financial and ownership records to support your claim; appeals can only consider evidence you provide with the form.
- Challenging the Wrong Issue: Use IRS Form 9423 only to appeal collection actions and not to dispute your underlying tax liability, which requires a Collection Due Process hearing.
- Failure to Include Representation Forms: Include Form 2848 when represented by a tax professional so Appeals can communicate directly with your authorized representative.
What Happens After You File IRS Form 9423 (2020)
After submission, the IRS collection office reviews your appeal for completeness and timeliness, then forwards it to the Independent Office of Appeals. Once received, most collection actions are paused while the appeals officer reviews your documentation and contacts you for a conference. Most cases are resolved within five to fifteen business days, depending on complexity. The Appeals office’s decision is final, and the IRS must implement any corrective actions ordered during the appeals review.
Stay ahead of IRS enforcement actions and learn your options with our IRS collection process guide for appeals and levies.
FAQs
What’s the difference between a CAP appeal and a Collection Due Process hearing?
A CAP appeal offers a faster way to resolve disputes over IRS collection actions, but does not allow judicial review in Tax Court. A Collection Due Process hearing, on the other hand, will enable challenges to the underlying liability and can lead to Tax Court review, but generally takes longer to complete.
Can I appeal an IRS decision more than once for the same tax period?
You can appeal each separate IRS collection action once per tax period; however, if the IRS files new liens or issues new levies later, those actions may be appealed separately using a new Form 9423.
Do I need a tax professional for a CAP appeal?
While not required, consulting a tax attorney or certified public accountant can help you prepare supporting documentation and communicate effectively with the Appeals office.
What happens if I miss the filing deadline?
If you miss the filing deadline, you typically lose your CAP appeal rights; however, you may still qualify for a Collection Due Process or Equivalent Hearing depending on your IRS notices.
Does filing Form 9423 stop IRS collection actions immediately?
In most cases, filing Form 9423 on time halts IRS collection actions until the Appeals office issues a decision; however, the IRS can proceed if it believes the tax debt is at risk of being lost.
