How You Can Make an Appeal if Federal Tax Lien is Filed Wrong?

tax form

Nobody’s perfect, even the IRS personnel have their share of mistakes, but most of us have no idea that we can appeal the amount that the IRS wants us to pay, a tax levy or a federal tax lien.

If you wish to appeal to the IRS decision, there are certain criteria that you need to know.

Meanwhile, let’s have a closer look on how to appeal when you are filed with a federal tax lien by the IRS.

Ideally, the IRS will notify you in writing not more than five (5) business days after they’ve filed a federal tax lien against you. The IRS has several options on such notification, they can give the federal tax lien notice in person, leave it on your home’s mailbox, or send it to your usual place of business via certified or registered mail.

The first thing you must do after reading the notice is to ask an IRS Revenue Officer or their local IRS manager to review your case and how this federal lien came about. You have the right to request a Collection Due Process (CDP) hearing with the Office of Appeals by filing a request for a hearing with the IRS office listed on your notice.  Please ask your local IRS office for proper documentation of the proceedings.

In filing a CDP, you may include and discuss these following issues:

  • If you paid all you owed to the IRS before the IRS filed the lien
  • The IRS assessed the federal tax and filed the lien when you were in bankruptcy, and/or subject to the automatic stay during bankruptcy
  • The IRS made a procedural error in the tax assessment
  • The time to collect the tax, called the statute of limitations, expired before we filed the lien. The normal statute of limitation period is 10 years from the date of assessment.
  • You were not given the opportunity to dispute the assessed tax liability
  • You wish to make spousal defenses. The Innocent spouse process may be available to you.

Further, the IRS CDP Hearings Officer will issue a determination letter regarding your appealed case. This letter may support to continue the federal tax lien filed against you or it may determine that the federal tax lien should be released and withdrawn immediately.

On the other hand, if the IRS decision is not in your favor, there’s a 30-day period starting with the date of determination, in which you may request judicial review in a court of proper jurisdiction.

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