Taxation & Estate Planning

IRS updates collection due process handbook

By howardlevy

The IRS has updated its handbook on Collection Due Process appeals (Chief Counsel Notice 2009-10). Included in the handbook is internal IRS guidance on issues such as disqualified employment tax levies, levies on single member limited liability companies, ex parte communications between appeals/collection and equivalent hearings.  

Guidance for Tax Court procedures is also discussed, including District Counsel’s propensity for filing motions for summary judgment in CDP litigation, motions to permit levy and motions for 6673(a) penalties in CDP cases filed for delay purposes.

By definition, a Collection Due Process appeal is filed to dispute to an IRS Final Notice of Intent to Levy or the filing of a Federal tax lien.  Before the IRS can levy on bank accounts, or make seizures of real or personal property, it must first provide a taxpayer the Final Notice of Intent to Levy.  After the notice is sent, there is a 30 day window to file a request a meeting with an IRS appeals officer, which can be followed by Tax Court review of the intended IRS collection action.  In most cases, all IRS collection action stops while the appeal and Tax Court case is being resolved. This is known as collection due process.

Full post as published by IRS and the Law on March 30, 2009 (boomark / email).