Internal Revenue Manual
IRM 8.24.1 — Collection Appeals Program (CAP)
Part 8. Appeals
Chapter 24. Collection Appeals Program and Jeopardy Levy AppealsSection 1. Collection Appeals Program (CAP) 8.24.1 Collection Appeals Program (CAP) Manual Transmittal April 24, 2026 Purpose (1) This document transmits revised IRM 8.24.1, Collection Appeals Program and Jeopardy Levy, Collection Appeals Program (CAP). Material Changes (1) Incorporated Interim Guidance (IG) AP-08-0624-0011, Revised Guidance for Taxpayer First Act (TFA) Access to Case Files, dated June 14, 2024. See IRM 8.24.1.3.1, Taxpayer Access to the Administrative File (CAP Cases). Updated paragraphs (1) to (6) and added (7) see below: (1) Updated the last sentence from documenting the history, to the case action record (CAR): ATEs will note communications with each taxpayer regarding this issue in the case action record (CAR) (2) Changed IRC 7803(e)(7)(C) to IRM 8.6.1.2.1(2) (3) Added a step when the ATE provides access and redacts the file themselves to: The ATE must attach a copy of the redacted file to the case in ACMS and include the word redacted in the document title. Also, added a Note for ATE to refer to PGLD Respond Directly and A Quick Guide to the Release of Collection Files (4) Changed Case Activity Record to CAR (5) Changed 5 business days to five business days (6) In the Example, changed non-privileged to nonprivileged Added (7) See IRM 8.6.1.2.1, Access to Case Files, for additional guidance and procedures. (2) Incorporated Interim Guidance (IG) AP-08-0624-0017, Revised Procedures for Secure Messaging, dated August 26, 2024. Secure Messaging replaced the prior terminology of Taxpayer Digital Communications (TDC) and Taxpayer Digital Communications Secure Messaging (TDC SM). The IG requested IRM 8.24.1 cross-reference IRM 8.6.1 regarding this guidance. See IRM 8.6.1.4.3, Using Secure Messaging to Communicate and IRM 8.6.1.4.3.1, ATE Case Actions for Secure Messaging. (3) Replaced Appeals Centralized Database System (ACDS) with Appeals Case Management System (ACMS) throughout this IRM section. (4) Added Printable View to Form 5402 throughout this IRM section: Printable View (Formally Form 5402). (5) Made editorial changes throughout this IRM. Effect on Other DocumentsThis IRM supersedes IRM 8.24.1, Collection Appeals Program (CAP), dated August 20, 2024, and incorporates the following interim guidance memorandums:Incorporated Interim Guidance (IG) AP-08-0624-0011, Revised Guidance for Taxpayer First Act (TFA) Access to Case FilesIncorporated Interim Guidance (IG) AP-08-0624-0017, Revised Procedures for Secure Messaging AudienceIRS Independent Office of Appeals (Appeals) Employees Effective Date(04-24-2026)Steven M. Martin Director, Operations Support
Program Scope and Objectives
8.24.1.1 (09-28-2021) Program Scope and Objectives Purpose: This IRM provides an overview of the procedures and general authorities associated with the Collection Appeals Program (CAP). Audience: Appeals Technical Employees (ATE), Appeals Account Resolution Specialists (AARS), and Appeals Team Managers (ATM). Policy Owner: Policy, Planning, Quality, and Analysis (PPQ&A) is under the Director of Operations Support (OS). Program Owner: Appeals Policy is the program office responsible for providing technical and procedural guidance to the Appeals organization and is under the Director of PPQ&A. Contact Information: Appeals employees should follow established procedures on How to Contact an Analyst. Other employees should contact the Product Content Owner shown on the Product Catalog Information page for this IRM.
Background
8.24.1.1.1 (09-03-2019) Background In 1996, the IRS implemented the CAP. This program provides an administrative appeal for certain collection actions. The appealable actions were initially limited to liens, levies and seizures. The legislative history of IRC 7123, enacted by Restructuring and Reform Act of 1998 (RRA 1998), reflects congressional intent that the CAP program be continued, although CAP is not specifically mandated by statute. On January 1, 1997, terminated installment agreements (IA) were added to the program through the Taxpayer Bill of Rights 2 (TBOR 2), enacted July 30, 1996. The RRA 98 followed, providing taxpayers the right to appeal the rejection of installment agreements (IAs). Currently, CAP is available for appeals involving IA rejections, modifications, and terminations, as well as liens, levies, and seizures.
Authority
8.24.1.1.2 (09-03-2019) Authority IRC 7122(e) serves as the authority to appeal the rejection of an IA. CAP is the program through which to file an appeal. IRC 6159(e) authorizes an appeal of IA terminations by the IRS. Treas. Reg. 301.6159-1(e)(5) authorizes an appeal of both IA terminations and modifications by the IRS. CAP is also the available mechanism through which to file an appeal. Part 5 (Collecting Procedures) of the IRM is also a reference for the legal and procedural requirements that Appeals must follow in making determinations on CAP cases.
Responsibilities
8.24.1.1.3 (09-03-2019) Responsibilities The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.
Program Reports
8.24.1.1.4 (09-03-2019) Program Reports PPQ&A provides trend and data analyses and detailed summary reports for Appeals.
Terms and Acronyms
8.24.1.1.5 (04-24-2026) Terms and Acronyms The table below lists common acronyms used in this section: Term Acronym Appeals Account Resolution Specialists AARS Appeals Case Memorandum ACM Appeals Case Management System ACMS Automated Collection System ACS Account Management Services AMS Account and Processing Support APS Appeals Team Manager ATM Appeals Technical Employee ATE Collection Appeals Program CAP Case Action Record CAR Collection Due Process CDP Department of Justice DOJ Installment Agreement IA Notice of Federal Tax Lien NFTL Personally Identifiable Information PII Shared Team of Administrative and Redaction Support STARS Taxpayer Advocate Service TAS Taxpayer First Act TFA
Related Resources
8.24.1.1.6 (09-28-2021) Related Resources Guidance for Account & Processing Support (APS) employees for CAP processing procedures is contained in IRM 8.20.5, Carding New Receipts and IRM 8.20.7, Closing Procedures. The TBOR lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.
Distinctions Between CAP and Collection Due Process (CDP) Hearings
8.24.1.2 (09-28-2021) Distinctions Between CAP and Collection Due Process (CDP) Hearings RRA 98 expands taxpayer rights to allow a "hearing" under Collection Due Process (CDP) after a Notice of Federal Tax Lien (NFTL) has been filed, and before a levy may be made (jeopardy levies, levies on state income tax refunds, disqualified employment tax levies, and levies on federal contractors are appealable after levy). The taxpayer has the right to file a tax court petition regarding Appeals' determinations under CDP, but not under CAP. CAP is available to taxpayers or third parties in a wide range of situations. See IRM 8.24.1.3, CAP Appeals. CAP is also available where the CDP, EH, or RJ right is not available (due to lapse of time or previous exercising of this one-time right for each tax period). Taxpayers who file a CAP request may also be entitled to, and file for, a CDP, EH, or RJ hearing, if a CDP notice was issued. See IRM 8.22.9.18, Retained Jurisdiction (RJ) Hearings. Determine which of these options is most beneficial for each taxpayer based on their indicated interests. If the taxpayer requests both a CDP and a CAP about the proposed levy or the NFTL filing, the taxpayer must choose one or the other. If the taxpayer chooses CAP, explain to the taxpayer what rights are being given up by withdrawing the CDP hearing request. Also secure a withdrawal for the CDP hearing, further ensuring the taxpayer understands they are giving up the right to seek judicial review. If the taxpayer will not sign a withdrawal, or cannot decide between a CDP and CAP, the taxpayer should be given the CDP hearing. The Appeals hearing officer should clearly document the case history with the details of the discussion regarding the taxpayer's appeal rights. Note: When a CAP and CDP are simultaneously requested (on a proposed levy or NFTL filing), there is no legal requirement that a taxpayer be given the right to a CAP hearing. Appeals may decide for policy reasons not to provide a CAP hearing (e.g., taxpayer will not sign CDP withdrawal or is unsure about which option to pursue). In this case, the Appeals hearing officer would close the CAP case using Closing Code (cc) 14 on the Printable View (Formally Form 5402, Appeals Transmittal and Case Memo). The Closing Letter should note the CAP was withdrawn in favor of exercising the taxpayer's CDP rights. This information should also be documented in the case history. Note: The prior involvement requirement is not applicable to CAP hearings. However, if the taxpayer believes the assigned Appeals hearing officer, who was assigned and worked a prior CDP (involving the same taxpayer, tax, and tax period), is biased against him/her, Appeals may decide to assign a different Appeals hearing officer to conduct the CAP hearing. Under CAP: Appeals' administrative decision is final. The goal is to provide a response with a five business-day turnaround. See IRM 8.24.1.3.1(5) for an exception regarding this objective. Appeals' review is for appropriateness of the action proposed or taken based on law, regulations, policy, and procedures after considering all of the relevant facts and circumstances. Note: For CAP IA appeals, consider the appropriateness of the monthly installment amount upon review of the taxpayer's financial information. See the example below for an illustration regarding a CAP IA case. Example: Rejected IAA Business Master File (BMF) taxpayer requests an IA with payment terms of $2,000 per month to resolve their outstanding corporate income tax liabilities of approximately $100,000. The taxpayer provides the requested financial documentation and they are in compliance with no issues precluding them from qualifying for an IA.The Revenue Officer (RO) informs the taxpayer the proposal is rejected because Collection's review of the financial documentation reflects they can pay $3,000 per month. The Independent Reviewer concurs with the rejection determination and the taxpayer files a CAP appeal to protest the denial.Copies of the Collection Information Statement (CIS) for Businesses (Form 433-B) and attachments are forwarded to Appeals for the CAP hearing. The assigned Appeals hearing officer reviews the financial documentation and calculates the taxpayer has the ability to pay $2,500 per month.In this case, if the taxpayer is agreeable to a monthly IA of $2,500, Appeals will direct Collection to arrange an IA for this amount. If the taxpayer is not agreeable to a monthly IA of $2,500, and they insist on their original IA request of $2,000 per month, Appeals will sustain Collection. Appeals does NOT consider alternatives to the issue under appeal, but solely determines the appropriateness of the issue under appeal.Example 1: Proposed NFTL FilingThe taxpayer submits a CAP appeal request upon completion of the required managerial conference, which did not produce a resolution to the disagreement concerning the proposed NFTL filing. During the Appeals conference, the Appeals hearing officer determines the taxpayer's income tax liability is under audit reconsideration and confirms with Examination that the balance is going to be reduced to an amount that would qualify the taxpayer for a streamlined IA.In this case, Appeals does not sustain Collection's position concerning the proposed NFTL filing. Appeals' determination directs that Collection's lien determination will be deferred, pending Collection's consideration of a streamlined IA. Having considered the appropriateness of the issue under appeal, the Appeals hearing officer will not negotiate the collection alternative(s) (e.g., IA).Example 2: LevyThe taxpayer submits a CAP appeal, requesting a levy release. The taxpayer acknowledges he has a delinquent return but claims the levy is creating an economic hardship. Aside from the delinquent return, the taxpayer is cooperative, having provided the requested CIS and supporting financial documentation to Collection.Appeals reviews the financial documentation forwarded by Collection and determines the levy is creating an economic hardship against the taxpayer. Considering IRC 6343(a)(1)(D), Appeals does not sustain Collection, directing that the levy be released. Having considered the appropriateness of the issue under appeal, the Appeals hearing officer will not consider any other case resolutions (e.g., collection alternatives or placing the account in Currently Not Collectable (CNC) status). Under CDP: Appeals' determination may be appealed in court. Appeals: •verifies that legal and procedural requirements have been met •explores collection alternatives or challenges to the liability•balances the proposed collection action with taxpayer's legitimate concern of intrusiveness Appeals retains jurisdiction over its determinations.
CAP Appeals
8.24.1.3 (09-28-2021) CAP Appeals The following publications inform taxpayers about the CAP program: Pub 594, The IRS Collection Process Pub 1660, Collection Appeal Rights A taxpayer, or a third party whose property is subject to a collection action, may appeal the following actions under CAP: Levy or seizure action that has been or will be taken. A NFTL that has been or will be filed. The filing of a NFTL against an alter ego or nominee's property. Denials of requests to issue lien certificates, such as subordination, withdrawal, discharge, or non-attachment. Rejected, proposed for modification or modified, or proposed for termination or terminated IAs. Note: A modification of an IA can involve a proposal by the IRS or the taxpayer. Disallowance of taxpayer's request to return levied property under IRC 6343(d). Disallowance of property owner's (third party's) claim for return of property under IRC 6343(b) (request for return of wrongfully levied property). See the example below for more information:Example:A third party may file a CAP to appeal the disallowance of a wrongful levy claim under IRC 6343(b). This includes a wrongful levy claim that is disallowed by Collection because it was not timely filed within the two- year deadline (see Publication 4528, Making an Administrative Wrongful Levy Claim Under Internal Revenue Code (IRC) Section 6343(b), for complete administrative claim filing guidelines) and given no consideration.When Collection rejects a third party wrongful levy claim based on an untimely claim, they issue a Letter 3973, Wrongful Levy Claim Rejection - Untimely Claim, citing the third party may appeal the determination through CAP. If the third party files a CAP in this situation, Appeals will review the disallowance of the claim regarding the timeliness issue and either sustain Collection or direct Collection to take the appropriate corrective action (i.e., review and consider the wrongful levy claim if it was timely filed).If Collection subsequently reviews the claim, as directed by Appeals, and issues a Letter 3974, Wrongful Levy Claim Rejection Letter, Appeals may review the facts and circumstances of the case if the third party files a CAP appeal. Note: A request to return levy proceeds must be made within two years from the date of such levy. A taxpayer may appeal in CAP: A levy or seizure on each asset or even the same asset previously levied if a newly discovered legal defect is the issue. The reason for this is that each levied or to be levied asset may have different issues. For example, a bank account in a different bank than previously levied on may actually be the asset of the child of the taxpayer but the taxpayer's Social Security Number (SSN) is on the account. Subsequent levies on the same asset (e.g., the same bank account), are not entitled to another CAP appeal unless there is a legal issue on the subsequent levy. A NFTL filed in each subsequent location. Each rejection, proposed modification, modification, proposed termination, or termination of an IA. Third parties claiming property was wrongfully levied are entitled to CAP before the levy proceeds are turned over to the IRS and applied toward the taxpayer's liability. Once the levied proceeds are applied toward the taxpayer's liability, the third party may submit an administrative claim to Advisory under the procedures described in Pub 4528, Making an Administrative Wrongful Levy Claim Under Internal Revenue Code (IRC) Section 6343(b). If the administrative claim is denied, the third party can request a CAP hearing regarding the denial. A taxpayer who claims that the levy is "erroneous" (see IRM 5.11.2.3.2, Wrongful and Erroneous Levies) is entitled to a CAP before the levy proceeds are turned over to the IRS and applied toward the taxpayer's liability. Once the levied proceeds are applied toward the taxpayer's liability, the taxpayer may make an administrative claim to Advisory under the procedures described in Pub 5149, Making an Administrative Return of Property Claim Under Internal Revenue Code (IRC) Section 6343(d). If the administrative claim is denied, the taxpayer can request a CAP appeal regarding the denial. Appeals has a goal to complete CAP cases as soon as possible with the ATE normally resolving the CAP within five business days from the date the case is assigned to them. Note: The five-day timeframe begins upon the ATE's receipt of the case and ends with the input of AC/FR on Appeals Case Management System (ACMS). Due to the swift resolution and limited nature of CAP reviews, most CAP cases are resolved by telephone or correspondence. However, there may be rare situations in which an in-person hearing request should be granted to reach account resolution. These situations will more than likely be rare, but if requested, the employee and his/her manager should consider the facts and circumstances in making the determination to approve or deny the request. Appeals' conference techniques are described in IRM 8.6.1, Conference and Settlement Practices - Conference and Issue Resolution. Note: If an in-person hearing is not necessary to resolve the account, or fully explain Appeals' determination to the taxpayer or representative, the conference should be held by telephone. NFTL withdrawals or lien discharges, IA, seizure, and claim issues may be quite complicated, or require verification, and will generally take longer than five business days to resolve. These cases should normally be resolved within 15 business days. Third parties may appeal an IRC 6325(b)(4)"right of substitution of value" discharge. If a certificate of discharge has been issued, and the third party wants to challenge the IRS's determination of the value of the government's interest in the property under IRC 7426(a)(4), the third party has only 120 days after the day on which such certificate is issued to file an action in federal district court. Before a taxpayer requests a CAP appeal, he or she must discuss the problem with the Collection manager. Taxpayers or representatives who make themselves unavailable to the manager for the mandatory discussion will not be entitled to a CAP appeal unless it is apparent the IRS manager did not offer a "reasonable" opportunity for such discussion to occur. Note: The discussion with the group manager on proposed modification, modified, proposed termination, terminated, or rejected IAs is not mandatory due to statutory right to appeal these actions. See IRC 7122(e)(2). The CAP guidance on premature referrals is in IRM 8.24.1.3.9, CAP Premature Referrals. By policy, collection action is suspended while lien, levy, and seizure CAP cases are in Appeals. Collection may continue enforcement action, however, if they believe withholding the action would put collection of the tax liability at risk. Below are examples of such situations: Evidence that the taxpayer is dissipating assets Pyramiding additional tax liabilities, including unpaid Federal Tax Deposits (FTD) Note: Appeals should be notified immediately if Collection determines that enforcement should continue. That contact should simply let Appeals know what will happen, and not the reason why enforcement should continue. The ex parte rules set forth in Rev. Proc. 2018-18 must be followed by both Collection and Appeals employees. Any discussion of why enforcement should continue would require bringing the taxpayer into the discussion, which might be detrimental to any jeopardy action. For IA rejections and terminations, levy action is prohibited by statute. See IRC 6331(k)(2). Note: The prohibition of levy does not apply if the taxpayer waives the levy suspension. Levy prohibition also does not apply on a proposed IA if the IA is requested solely to delay collection.
Taxpayer Access to the Administrative File (CAP Cases)
8.24.1.3.1 (04-24-2026) Taxpayer Access to the Administrative File (CAP Cases) In accordance with the Taxpayer First Act (TFA) and IRC 7803(e)(7), ATEs will ensure that "specified taxpayers" have access to the nonprivileged portion of the case file on record regarding the disputed issues (other than documents provided by the taxpayer to the IRS). ATEs will note communications with each taxpayer regarding this issue in the case action record (CAR). "Specified taxpayers," as defined in IRM 8.6.1.2.1(2), are entitled to request access to the case file. If the "specified taxpayer" requests access to the case file, ensure that they are provided access no later than 10 days before the date of the scheduled conference (unless the "specified taxpayer" has elected to receive the file no later than the date of the conference). Note: If the taxpayer meets the definition of a "specified taxpayer," but the ATE is unable to make phone contact with the taxpayer or authorized representative to schedule a conference and provide the taxpayer with an opportunity to gain access to the case file, note this information in the case history. This should be uncommon, but it may occur since there is no acknowledgement letter associated with CAP. See IRC 7803(e)(7)(A). Because all CAP cases are received electronically, the privileged portion of the case file will be redacted, and the nonprivileged portion of the case file will be made immediately available to the "specified taxpayer" so that a conference can be held as quickly as possible (at least 10 calendar days after the taxpayer receives access to the case file). In general, the ATE must submit a Shared Team of Administrative and Redaction Support (STARS) request for scanning/copying and redacting of the file. However, in circumstances in which the use of STARS is impractical (for example, the taxpayer appears for an in-person conference and asks the ATE for a copy of a particular document from the file before the conference begins), ATEs may decide to provide access and redact the file themselves. If the ATE redacts the file, they must attach a copy of the redacted file to the case in Appeals Centralized Database System (ACDS) and include the word "redacted" in the document title. STARS requests will be reassigned to the lead redactor who will expedite redaction services. No conference will be held until access to the file has been offered and provided to "specified taxpayers" that request access. Note: ATEs redacting case files may refer to Privacy, Governmental Liaison and Disclosure's (PGLD's) Respond Directly webpage for information relating to disclosure and release of case file information. A Quick Guide to the Release of Collection Files provides information on disclosure of case files, including considerations for disclosure of communications with Counsel. If the "specified taxpayer" elects to view the case file, and requests a conference sooner than 10 days from access, the ATE may hold the conference and record the taxpayer's request in the CAR. Our goal to resolve CAP cases within five business days from ATE receipt, as noted in IRM 8.24.1.3(4), will be extended to five business days from the end of the 10-day period if the "specified taxpayer" elects to access the file. Below is an example of a communication with a "specified taxpayer" concerning this issue. Example: In accordance with the Internal Revenue Code, you have the right to access the nonprivileged portion of your case file. The right to access applies to documents related to the disputed issues and does not include access to documents you previously provided to the IRS. If you want access to the nonprivileged portion of your case file, please advise me and we will schedule our conference no sooner than 10 days from your access to the file. See IRM 8.6.1.2.1, Access to Case Files, for additional guidance and procedures.
Referrals to the Taxpayer Advocate Service (TAS)
8.24.1.3.2 (01-01-2006) Referrals to the Taxpayer Advocate Service (TAS) A taxpayer should be referred to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) in accordance with local procedures using a Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), under the following two circumstances: When the taxpayer meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and the taxpayer's issue cannot be resolved within 24 hours. If the taxpayer's issue can be resolved within 24 hours, or you have taken steps to begin resolving the taxpayer's issue within 24 hours, do not forward the case to TAS, unless the taxpayer asks to be referred to TAS. When a taxpayer asks to be referred to TAS, and their issue meets TAS criteria, their case should be forwarded even if the issue can be resolved the same day. See IRM 13.1.7.5, Same Day Resolution by Operations. To the extent possible, complete Appeals' determination before the local TAS office makes a relief determination, since the appeal process may resolve the taxpayer's concerns.
Exclusions from CAP
8.24.1.3.3 (09-28-2021) Exclusions from CAP Several collection and examination issues have separate appeal procedures. Advise taxpayers who raise these issues under CAP to proceed with the appropriate appeal procedure. These include: Pre- or post-assessment of Trust fund recovery penalties (TFRPs) Offers in Compromise (OIC) Penalty appeals Jeopardy levies: unless the time to appeal under IRC 7429 has expired and the taxpayer will not be given a CDP hearing (e.g., no hearing request was submitted within 30 days of the notice granting CDP rights or a prior CDP hearing was held for the liability at issue); or, the jeopardy levy was issued during an IA, OIC, or on the date of a summons. See IRM 5.11.3, Jeopardy Levy without a Jeopardy Assessment. Audit reconsideration Claims for refund or requests for abatement of tax Note: Third party wrongful levy claims under IRC 6343(b) that have been rejected are appealable under CAP. See Pub 4528. Also excluded from CAP: Actions with respect to an asset under the control of a court (e.g., bankruptcy petition filed by the taxpayer, probate proceedings, and receivership proceedings). See IRM 21.5.6.4.44, -V Freeze. Modules referred to Area Counsel to file suit (e.g., suit to reduce an assessment to judgment) or modules subject to a suit filed by the taxpayer (e.g., refund suit of a divisible tax) in which the Department of Justice (DOJ) will defend the IRS's interest. See IRM 21.5.6.4.46(2), -W Freeze. Challenges by a third party to a nominee, alter ego, or transferee lien or levy with respect to any property when the third party's status as nominee, alter ego, or transferee is at issue in a suit against the United States (e.g., wrongful lien or levy suit under IRC 7429 or quiet title action under 28 USC 2410 in which DOJ will defend the IRS's interest, regardless of whether the property subject to challenge is at issue in suit). Issues not within the scope of Internal Revenue laws, (i.e., moral, religious, or constitutional issues). Challenges to the existence or amount of a liability (liability issues are addressed under CDP (see IRM 8.22.8, CDP Liability Issues and Relief from Liability) Collection's decision not to release a lien. See Treas. Reg. 301.6326–1(f) and IRC 6326. Note: Other denials of requests to issue lien certificates, such as subordination, discharge, withdrawal, or nonattachment may be appealed under CAP. Cases controlled by Criminal Investigation (CI) where CI concurs with the collection activity may be entitled to a CAP. Appeals will generally delay a CAP hearing during the pendency of criminal investigation and proceedings, unless the determination is made consistent with IRM 1.2.1.5.11, Policy Statement 4-26 (Formerly P-4-84), Criminal and civil aspects in enforcement and that the CAP hearing will not imperil prosecution.
Rejected, Modified, Proposed for Modification, Terminated and Proposed for Termination Installment Agreements under CAP
8.24.1.3.4 (09-03-2019) Rejected, Modified, Proposed for Modification, Terminated and Proposed for Termination Installment Agreements under CAP The following table provides the timeframes and citations regarding CAP IA appeals: If the CAP involves a... Then the taxpayer has... Pursuant to... Rejected IA 30 days to request an appeal; the appeal must be timely postmarked. IRC 7122(e) Note: IRC 6331(k)(2)(B) provides no levy may be made for 30 days after rejection of an IA, and, if an appeal is filed in that 30 day period, during the period the appeal is pending. Modified or Proposed Modification of IA 30 days from the proposed modification of the IA to submit an appeal; the taxpayer may also appeal prior to the expiration of the 30-day period commencing the day after the modification is to take effect. Note: If a CAP hearing is requested prior to modification, the taxpayer may not appeal the decision again once the modification takes place. Treas. Reg 301.6159-1(e)(5) Proposed Termination of IA (Defaulted IA) 30 days from the proposed termination of the IA to submit an appeal; the taxpayer may also appeal prior to the expiration of the 30-day period commencing the day after the termination is to take effect. Note: Unless the taxpayer appeals within the 30-day period or cures the default, the IA will terminate by law. IRC 6159(e) Treas. Reg 301.6159-1(e)(5) Terminated IA 30 days to request an appeal after the IA is terminated; the 30-day period commences the day after the date the notice says the termination is to take effect. Note: If the taxpayer appeals the proposed termination, the taxpayer may not appeal again after the termination takes effect. IRC 6159(e) CFR Reg 301.6159-1(e)(5)Treas. For a proposed termination of IA, the taxpayer has 30 days from the date of the notice of intent to terminate in which to request an appeal. Unless the taxpayer appeals within 30 days of the date of the notice, or cures the default, the IA will terminate by law. After the termination of the IA, the taxpayer's right to appeal will continue for an additional 30 days (see above chart). IRC 7122(e) provides that rejected IAs will have an independent administrative review by a designated official within Collection before the rejection is communicated to the taxpayer. Collection function will input the required Transaction Code (TC) 971 codes for levy suspension on rejected IAs. The most common reasons for termination are: Failing to make agreed payments, Incurring new unpaid liabilities subsequent to the IA, or See IRM 5.14, Installment Agreements, for additional reasons. When the IRS believes a taxpayer has defaulted on an IA, a notice is sent proposing termination. CP 523 is sent for campus cases and Letter 2975, Notice of Defaulted Installment Agreement Under IRC 6159(b), is sent for field cases. Both letters ask the taxpayer to contact the IRS or appeal within 30 days. Otherwise, the agreement is terminated. Terminated IAs: Have an automatic reversion from status 64 (terminated IA) to status 22 Automated Collection System (ACS) after 13 cycles. For any terminated IA case not closed by the twelfth cycle after an agreement is terminated, a STAUP 22-09 needs to be input for additional time. An additional STAUP 22-xx may be necessary if the case is not resolved in the additional nine cycles that were requested by the STAUP. xx is equal to the number of cycles for which the additional cycles STAUP are being requested. It is the Appeals hearing officer's responsibility to monitor the status of the CAP and ensure it does not default to status 22 while they are working the CAP. Either the Collection function or Appeals may input the STAUP, per local arrangement, but Appeals is responsible for ensuring that it is done.
Collection Field CAP Cases
8.24.1.3.5 (08-20-2024) Collection Field CAP Cases Form 9423, Collection Appeal Request, is recommended for field Collection CAP appeals. This form also provides instructions on how to appeal. While Form 9423 is recommended for CAP appeals, any written request for a CAP hearing will be honored. Taxpayers can obtain Form 9423 and these publications from the field Collection groups and the IRS's web page at http://www.irs.gov/. Employees can obtain these forms from the internal Multimedia web site. The request for a CAP appeal does not need to be completed prior to the group manager conference. Taxpayers, however, need to let the Collection office know within two business days after the conference with the Collection manager that they plan to submit Form 9423. The Form 9423 must be received or postmarked within three business days of the conference with the Collection manager, or Collection may resume on all actions except rejected or terminated IAs. A conference with the group manager is not required on IA CAP appeals. Note: Taxpayers will still be entitled to a CAP appeal if their Form 9423 (or other written request) is received up to 10 business days after the required managerial conference (the CAP request should be submitted to the office or RO that took the action). However, the stay of collection is not required if their request is received more than two business days after the conference date. This does not apply to IA appeals. If a taxpayer requests a conference and is not contacted by a manager within two business days of making the request, the taxpayer may contact Collection again or submit Form 9423. If the taxpayer chooses to submit Form 9423, the date of the taxpayer's request for a conference and information reflecting he/she was not contacted by a manager should be noted in Block 15 of the Form 9423. The Form 9423 should be received or postmarked within four business days of the taxpayer's request for a conference or collection action may resume. The originating function needs to separately upload each new CAP receipt to Appeals through the Electronic Case Receipts (ECR) intake site. A Form 15044, Transmittal of Collection Appeals Program (CAP) Hearing Request, needs to be completed and included with the CAP appeal. Note: On the Master File Tax (MFT) and Tax Period fields on the ECR page, enter "see attached Form 15044." Note: Consider the following timeframes when forwarding CAP appeals through the ECR intake site: If the CAP involves... Then forward the CAP to Appeals a lien, levy, and/or seizure Within two business days of the manager's rejection or receipt of the taxpayer's or third party's CAP appeal request, whichever occurs later. an IA Expeditiously, due to the statutory restrictions on levy. No managerial conference is required prior to forwarding a CAP IA to Appeals. The information needed for a CAP appeal will be uploaded to the ECR site. Generally, a copy of the entire case file is not necessary and is burdensome. Although infrequent, should additional documentation be necessary, Collection and Appeals, on a case-by-case basis, may determine together what portion of the file needs to be transmitted to Appeals to adequately consider the appeal. Any communications should be limited to ministerial, administrative, or procedural matters and not extend into the merits, accuracy of the facts, or strengths and weaknesses of the case (see Rev. Proc. 2012–18, Section 2.03(2) &(3)). At a minimum, the Appeals file should include: Form 15044, Transmittal of Collection Appeals Program (CAP) Hearing Request. Form 9423, Collection Appeal Request, and any taxpayer correspondence Copies of the relevant levy, lien, and/or seizure documents Form 433A, Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or Form 433-B Any other relevant documents, such as copies of deeds, mortgages, counsel opinions, and appropriate financial documentation Copy of Form 2848, Power of Attorney and Declaration of Representative, if the Power of Attorney (POA) is not on Integrated Data Retrieval System (IDRS) All Appeals offices have access to the IDRS and Integrated Collection System (ICS). The ATE can access the Revenue Officer's ICS case file that includes case history, information on account transactions and the manager's comments regarding the conference. Collection no longer needs to provide paper copies of the following: ICS history TXMODs Power of attorney information (IDRS cc CFINK) Installment agreement details (IDRS cc IADIS) The Appeals hearing officer or their manager will contact the RO or group manager to obtain additional information within the IRS's control or readily available to the Collection employee that is needed to adequately consider the issues raised by the taxpayer. Caution: Communications between Appeals and other IRS employees are strictly limited to ministerial, administrative, or procedural matters, and the merits of the case cannot be discussed. See Rev. Proc. 2018-18 at §2.03(2) regarding such matters. Additional information and clarification concerning ex parte communications is available under IRM 8.1.10, Ex Parte Communications. Seizures are appealable either before the seizure action takes place or after it is completed. However, taxpayers have 10 business days after the Notice of Seizure is received or left at their home or business to appeal to the Collection manager. Note: If a seizure involves perishable goods, an appeal may not be possible until after the sale. The appeal will generally be handled in the Appeals office serving the taxpayer's home address or, in the case of a corporation, the principal place of business. See IRM 5.1.9, Collection Appeal Rights, for Field Collection CAP procedures.
ACS CAP Cases
8.24.1.3.6 (08-20-2024) ACS CAP Cases Taxpayers may make an oral request for a CAP appeal on ACS cases. This request for an appeal and a statement about the issue is documented in the Comments section of the ACS Entity Screen. Taxpayers must speak to the ACS Manager prior to the case being sent to Appeals. CAP cases on liens or levies should be sent to Appeals within two business days of receipt of the taxpayer's or third party's request, subsequent to the conference with the manager, which did not result in a resolution. Note: A managerial conference is not required on IA CAP appeals. The ACS CAP coordinator will upload the following documents to Appeals through the ECR intake site: Form 15044 Copies of taxpayer's correspondence Form 9423, if available Form 433F, Collection/Information Statement Form 433-A and/or Form 433-B, if available Copy of Form 2848, if the POA is not on IDRS ACS screen prints, including the Entity, Comments, and Module screens The Integrated Case Processing screen information available through Account Management Services (AMS) Form 4442, Inquiry Referral, if used Other pertinent information To obtain additional ACS case file information, Appeals hearing officers can access AMS. Further information on AMS can be obtained by accessing http://ams.web.irs.gov. You can also request additional information from the ACS manager. Upon closing an ACS CAP case, the closing documents (Printable View (formally Form 5402), Closing Letter, and Appeals Case Memorandum (ACM), if prepared) will be sent via encrypted email to the originating ACS CAP coordinator.
Accounts Management CAP Cases
8.24.1.3.7 (04-24-2026) Accounts Management CAP Cases A taxpayer may make an oral request for a CAP appeal on cases which are worked by Accounts Management. These will normally be cases which are not assigned to either ACS or Field Collection. Form 15044, Transmittal of Collection Appeals Program (CAP) Hearing Request, will be uploaded to Appeals through the ECR intake site. Customer Service sites have a two-business day period to send cases on liens or levies to Appeals. Taxpayers must speak to the Customer Service Manager prior to the CAP being sent to Appeals. Normally the CAP will be forwarded to Appeals by the CAP coordinator for the location where the CAP is received. Note: The managerial conference is not required on IA CAP appeals. In addition to Form 15044, Customer Service personnel should also upload the following documents: Form 4442, if used, which has a space for a brief description of the taxpayer's inquiry and proposed resolution The taxpayer's correspondence The Integrated Case Processing screen information available through AMS Other pertinent information When a CAP case has been forwarded to Appeals, AMS will utilize IDRS to input a STAUP for four cycles and to enter a history item indicating a CAP case has been received and forwarded to Appeals. CAPLNOP - CAP, Lien Issue CAPLVOP - CAP, Levy Issue CAPIAOP - CAP, IA Termination IADENIAL - CAP, IA Denial Upon closing an Accounts Management CAP case, the closing documents (Printable View (formally Form 5402), Closing Letter, and Appeals Case Memo, if prepared) will be sent via encrypted email to the initiating CAP coordinator.
Case Procedures under CAP
8.24.1.3.8 (04-24-2026) Case Procedures under CAP Appeals hearing officers should treat CAP cases as their first priority (unless a statute will expire on another case within five days). When resource limitations rather than case complexities will not allow cases to be closed in five business days from the Appeals hearing officer's receipt, work CAP cases in the following priority: In-business employment tax cases Other lien and levy (includes seizure) cases IA rejections, modifications, or terminations Note: Cases with complex issues, such as NFTL withdrawals, discharges, or subordinations, IA, seizure, or claim issues, may be quite complicated and/or require verification and cannot realistically be completed within five business days. Employees should give the issue the necessary time for completion in a quality manner. If the case involves an issue for which the period for filing suit (wrongful levy suit is two years from the date of the levy) is due to expire, the party should be directed to file suit in lieu of a CAP hearing (when a third party has already filed a request for the return of property under IRC 6343(b), the period for filing a wrongful levy suit is 12 months from the date of filing the request or six months from the date of the disallowance by Collection, whichever is shorter). Caution: Once the taxpayer files suit, and the action is under the control of the DOJ, the department has exclusive authority over any issues. Refer to IRM 21.5.6.4.46(2), -W Freeze, for the codes that define a DOJ case. IRM 25.3.8, TC 520 -W Freeze Servicewide Guide, is available for additional information. Employees should hold a conference with the taxpayer within two business days of case receipt to allow maximum flexibility for decision-making and paperwork preparation. The stringent timeframes were set for the following reasons: To give taxpayers an almost immediate decision, To ensure that taxpayers do not appeal these actions solely to delay collection, and To avoid inconveniencing third parties longer than is necessary when these parties are holding attached property. Phone conferences are common in these cases. If requested, allow taxpayers a reasonable time to schedule a conference. Normally, this should be no more than five business days. See IRM 8.24.1.3.1, Taxpayer Access to the Administrative File (CAP Cases), regarding an exception to this rule. Generally, if the taxpayer does not elect a conference within the limits given, Appeals will make a decision based on available information. Note: More time may be granted in exceptional circumstances, such as medical emergencies. Communicate and coordinate any delays with Collection. It is vital that the Collection case be fully and clearly documented, since missing and unclear information could cause a case to take more than five business days to resolve or result in Appeals reversing the collection action proposed or taken. Before the conference with the taxpayer, contact the RO to clarify the content of any illegible or unclear statements or documents or to secure a document referred to in the file that was not included with the file. Such contact is permissible ex parte contact. See Rev. Proc. 2012–18 at § 2.03(2)(a) Examples (i) and (iii). Question the RO about any unclear procedural matters, such as where compliance with the IRM requirements for seizure was contemporaneously documented. Such contact is permissible ex parte contact. See IRM 8.1.10.4.2, Administrative File. But, do not discuss the actions themselves. If a taxpayer presents new information to Appeals that the RO has not considered, Appeals may ask the RO to review and comment on the information, but communication may not be conducted ex parte. To the extent the RO is expected to orally comment on the accuracy of the new information, or the relative importance of the information to Appeals' decision, the taxpayer/representative must be given an opportunity to participate in any discussions with the RO. If comments on the information are in writing, the comments should be sent simultaneously to Appeals and the taxpayer. In this event, the taxpayer must be given a reasonable opportunity to respond. See IRM 8.1.10.4.1.3, New Information Received or New Issues Raised. Note: Due to the quick turnaround goal on CAP cases (five days), it is extremely rare that Appeals will ask Collection to review and comment on new information. Ultimately, however, the assigned Appeals hearing officer will need to exercise judgment and consider if any new taxpayer information should be reviewed by Collection, or if the current facts and circumstances (as provided to Collection and forwarded to Appeals) are sufficient for Appeals to determine the appropriateness of the issue under appeal. Appeals should review the case for appropriateness of the action, proposed or taken, based on law, regulations, policy, and procedures (national and local), considering all of the relevant facts and circumstances. Local procedures will only be considered appropriate if they are written and consistent with the IRM. Judgment is likely to be an issue on these types of cases, although they can also involve legal or procedural issues. Appeals may reverse the Collection function's action if evaluation of the taxpayer's history and current facts and circumstances indicate that the proposed or taken action is inappropriate. Due to the extensive investigation and multiple levels of approval required in seizing property, the appropriate approval authority in Appeals must concur before a decision to direct release of a seizure is shared with Collection. If a Collection Area Director approved the seizure, the Director of Collection Appeals must approve the release; if the Collection Territory Manager approved the seizure, the Appeals Area Director must approve the determination to release. Appeals should inform both the Collection function and the taxpayer of the decision as soon as possible after receiving the necessary approvals to direct release of a seizure. Approval may initially be oral to speed up the notification process. Follow any oral communication of approval with managerial documentation in the case action record. The written closing letter should be faxed or mailed to the taxpayer's current address no later than three business days after the final approval of Appeals' decision. If a fax number is not available, and the taxpayer's current address is unknown, send the letter to the last known address. APS will ensure the closing letter is timely faxed or mailed (if a fax number is not available). Appeals' decision will be implemented, as applicable, after both Collection and the taxpayer have been informed of the decision. Collection will be informed via encrypted email. Appeals' CAP hearing decision is limited to sustaining Collection or otherwise directing Collection to take the appropriate corrective action (e.g., release levy).Example: Proposed SeizureDuring a field visit to the taxpayer's address of record, the RO is informed the property is being rented and the taxpayer resides at another location. The taxpayer is uncooperative with information concerning the real property, but the RO conducts research and learns the taxpayer owns the property and it is unencumbered.The RO proceeds with the required pre-seizure paperwork and advises the taxpayer that seizure is the next planned action, pursuant to IRM 5.10.1.6.1, Personal Contact to Advise the Taxpayer of Proposed Seizure Action. In response, the taxpayer's POA submits a CAP appeal against the proposed seizure after the required managerial conference does not generate a resolution.During the CAP hearing, the POA acknowledges the subject property is free and clear, but informs the Appeals hearing officer that the home is occupied by the taxpayer's former spouse and dependent minor children.Upon Appeals' discovery concerning the occupancy of the home, it is acknowledged that judicial approval is required prior to seizure pursuant to IRC 6334(e)(1) and IRM 5.10.2.3, Judicial Approval for Principal Residence Seizures. As a result, Appeals directs Collection to cease pursuing seizure of the property until judicial approval is secured. The taxpayer's closing letter should clearly outline the following: Any agreement reached with the taxpayer, Any relief given, Rationale for decision, and If the action of the Collection function was fully supported. Note: Letter 5100, Collection Appeals Program Template, is available as a CAP template letter on ACDS 2.0. Prepare an Appeals Case Memo (ACM). The ACM should include complete instructions on the decisions made and any action that will need to be completed (e.g., establish an IA for XXX amount per month, investigate discharge, whether there are no restrictions on enforcement, etc). Note: Closing letters with sufficient information may serve as the ACM. Appeals managers will verify the appropriateness of tone and completeness of closing letters used as an ACM. Both the government's position and the taxpayer's proposal need to be discussed, and the rationale for and appropriateness of the Appeals' decision must be clearly shown through the analysis of the taxpayers' history and current facts and circumstances. If the case involved a third party claimant to property under IRC 6343(b) and Appeals sustains Collection's denial of the request, the closing letter must include the claimant's rights. For example, the third party should be informed of the opportunity to file a wrongful levy suit pursuant to IRC 7426(a)(1). Include the applicable time limitations provided in IRC 6532(c). An Appeals Case Memo, if prepared, is not required to be issued to the taxpayer as an attachment to the closing letter. The Appeals hearing officer will forward the entire closed CAP case file (i.e., the original documents submitted through the ECR intake site, any additional documents received from the taxpayer/representative during the hearing, and the closing documents), via encrypted email, to the ATM for approval. If the taxpayer filed a Form 911, Request for Taxpayer Advocate Service Assistance, or if the case was otherwise referred to TAS, provide a copy of the closing letter and the Appeals Case Memo to the controlling local TAS office.
CAP Premature Referrals
8.24.1.3.9 (04-24-2026) CAP Premature Referrals CAP cases should be closed on ACMS as a premature referral (cc 20) in the following instances: The taxpayer appealed before entitlement to a CAP hearing. The taxpayer or representative did not have the mandatory meeting with the manager (not applicable to IA CAP requests). The CAP request is an excluded issue. IRM 8.24.1.3.3, Exclusions from CAP. The CAP appeal is not timely. The appeal was submitted later than allowed under the CAP timeframes. The timeframes for filing a CAP IA are listed in IRM 8.24.1.3.4, Rejected, Modified, Proposed for Modification, Terminated and Proposed for Termination Installment Agreements under CAP. For other CAP appeals, see IRM 8.24.1.3.5, Collection Field CAP Cases. The taxpayer submitted an appeal on the same issue based on the same facts after Appeals rendered a decision on the issue (e.g., the taxpayer filed a subsequent CAP appeal against a levy on the same asset, but did not offer any new information). The Form 9423 in a Field Collection CAP case is not signed by the taxpayer or an authorized representative. The following are examples of premature referral considerations (when to return and when not to return a CAP as a premature referral):Example 1: CAP involving same facts and circumstances - A taxpayer submitted a CAP requesting the consideration and acceptance of a bond in lieu of a NFTL filing. Appeals reviewed the case and directed Collection to allow the taxpayer 21 days to submit a bond proposal to the IRS, citing that Collection must give full consideration to the proposal and follow the IRM procedures and guidelines, as provided in IRM 5.12.3.3.3, Acceptance of a Bond - IRC 6325(a)(2). Appeals also noted that Collection may proceed with filing the NFTL if the bond proposal is not accepted.Collection considered the taxpayer's bond proposal, as directed by Appeals, and did not accept the bond in lieu of filing the NFTL. The taxpayer did not agree with the decision and subsequently filed another CAP to request acceptance of a bond in lieu of the NFTL filing. The CAP request contained nominal changes to the original facts and circumstances in the earlier CAP.Per IRM 5.1.9.4.4(11), CAP Process, decisions by Appeals are binding on the taxpayer and Collection, and the taxpayer may not appeal the same issue under CAP once Appeals has decided the issue on the same factual basis. Ultimately, Collection adhered to Appeals' decision in the initial CAP, and since the facts are essentially the same, the taxpayer is not entitled to another CAP on this issue. Thus, if the CAP were to be forwarded to Appeals, it would be returned as a premature referral.Example 2: CAP involving an NFTL withdrawal request - An NFTL is filed against the taxpayer, who disputes the lien filing and participates in a conference with the RO Group Manager. During the managerial conference, the taxpayer requests an NFTL withdrawal, but no agreement is reached. Subsequently, the taxpayer files a CAP to resolve the issue in Appeals. In accordance with IRM 8.24.1.3(2)(b), which cites the taxpayer may file a CAP appeal on an NFTL that has been or will be filed, the ATE works within the CAP guidelines, as referenced in IRM 8.24.1.3.8(13), Case Procedures under CAP. It notes that Appeals is limited to sustaining Collection or otherwise directing Collection to take the appropriate corrective action. Upon rendering a determination in favor of the taxpayer, the ATE directs Collection to withdraw the NFTL as the appropriate corrective action. In this example, the taxpayer could have submitted a request for an NFTL withdrawal through Collection Advisory and, if denied, would have been afforded CAP rights. See IRM 8.24.1.3(2)(d). It is not mandatory, however, for the taxpayer to initially pursue an NFTL withdrawal through Collection Advisory. When a CAP is filed to dispute an NFTL filing, and Appeals finds in favor of the taxpayer, the appropriate corrective action is to withdraw the NFTL per IRC 6323(j) (e.g., NFTL filing was improvident, incorrect, or administrative procedures were not followed).Thus, a CAP lien that involves an NFTL withdrawal request that has not been subject to a Collection Advisory review should NOT be returned as a premature referral. Note: Other lien certificates (e.g., subordination, discharge, and non-attachment) require the review of Collection Advisory. Upon denial, the taxpayer may request a CAP lien. Appeals does not issue a Uniform Acknowledgment Letter for CAP cases. While there is no requirement to notify the taxpayer the CAP request is being returned to Collection as a premature referral, it is a best practice to send a brief letter to the taxpayer advising the CAP appeal is being returned to Collection, along with the reason for the return (e.g., due to issue excluded from CAP). Note: Letter 5180, Appeals Premature Referral - Collection Issues - Jurisdiction Released, is available to advise the taxpayer their CAP appeal is being returned to Collection, along with the reason for the return (e.g., issue excluded from CAP), as a premature referral. Example: A third party files a CAP, citing a wrongful levy against them. Since the levied funds have been turned over to the IRS and applied toward the taxpayer's account, the third party is not eligible at this stage for a CAP appeal. In this case, it would be courteous and appropriate to send Letter 5180 to the third party, advising they need to file a wrongful levy claim per Publication 4528, Making an Administrative Wrongful Levy Claim Under Internal Revenue Code (IRC) Section 6343(b), to appeal the levy. Provide a copy of the publication, citing it provides information regarding the deadline to submit the wrongful levy claim, two years from the date of the levy, and notes the option to file a civil action in district court. You would further advise that if their claim is denied, they would have an opportunity at that time to file a CAP.
Effect of Decision under CAP
8.24.1.3.10 (09-03-2019) Effect of Decision under CAP Decisions by Appeals are binding on the taxpayer and the Collection function, with certain limited exceptions. The Collection function will take the actions directed by Appeals. However, the default of the agreement by the taxpayer will release the Collection function from the terms of the agreement. Material misrepresentation of fact or failure to fully disclose any material information by the taxpayer will make any agreement - such as a delay in lien or levy or an IA, etc. - reached on behalf of the IRS voidable. Before the Collection function declares an agreement void under this provision, the Collection employee will confer with Appeals, as described in IRM 8.24.1.3.10.1, Disagreement with Appeals Decision. If Appeals sustains the Collection function's action(s), the Collection function may resume any suspended actions.
Disagreement with Appeals Decision
8.24.1.3.10.1 (12-02-2014) Disagreement with Appeals Decision If there is concern or disagreement with respect to a decision reached by Appeals in a particular case, local management in Collection and Appeals should work to address concerns and resolve disagreements. If resolution cannot be reached informally at the local level, the *AP Formal Dissents centralized mailbox is available as a formal process to elevate concerns and issues to Appeals. This information is outlined in IRM 5.1.9.5.4, Disagreement with Appeals Decisions. It is expected local management in Collection will contact local Appeals management within two business days of the faxing of information (Printable View (Formally Form 5402), copy of the closing letter, and Appeals Case Memo, if any) from Appeals to Collection. These discussions will not take place until the Appeals case has been concluded (i.e., determination or decision letter or closing letter issued to the taxpayer) and the case returned to Collection. This will ensure an independent Appeals function within the IRS, to the extent that such communications during Appeals' decision making process appear to compromise the independence of the Appeals hearing officers. See IRM 8.1.10, Ex Parte Communications. If Appeals' determination is reopened, then Appeals will notify the taxpayer. The taxpayer will be given an opportunity to respond to Collection's facts and arguments in favor of reopening the determination.
CAP "Type" and "Closing" Codes for ACMS
8.24.1.3.11 (09-03-2019) CAP "Type" and "Closing" Codes for ACMS Appeals Case Management System (ACMS) type codes are used to track this program: ACMS Code Is used for... CAPLV levies, third party claims to property under 6343(b), taxpayer requests for return of property under 6343(d) CAPLN NFTLs, lien issues, denied requests to issue lien certificates, such as subordination, withdrawal, discharge, or non-attachment CAPSZ seizures CAPIA rejected, modified, proposed for modification, terminated, or proposed for termination IAs Closing codes are used under the following circumstances. If the Collection action is Use Closing Code (cc) When... Fully sustained 14 the collection action is supported with no change. Not sustained 15 the collection action is completely overturned. For example, cc 15 would be used when a levy is released. Partially sustained 16 only minor changes are made in the collection action. For example, if filing of a NFTL is proposed, a minor change would be to give the taxpayer 10 more days to come up with the funds before the NFTL is filed. Note: After filing a CAP appeal, if the taxpayer, or their representative, state they are no longer interested in pursuing the appeal and withdraw their CAP appeal, Appeals should close the case with cc 14, supporting Collection. In a CAP withdrawal: • The assigned ATE may sign the Closing Letter• The Printable View (Formally Form 5402) does not require an ATM signature
Procedures for Shipping Personally Identifiable Information (PII)
8.24.1.4 (12-02-2014) Procedures for Shipping Personally Identifiable Information (PII) In the extreme rare event that a paper CAP file is shipped, follow the shipping policy for Personally Identifiable Information (PII) documents located at: http://publish.no.irs.gov/mailtran/piihardcopy.html. For additional information on shipping PII, go to Employee Toolkit, Shipping Procedures for Personally Identifiable Information (PII).
Instructions for Completing Customized CAP Printable View (Formally Form 5402)
Exhibit 8.24.1-1 Instructions for Completing Customized CAP Printable View (Formally Form 5402) Item Instructions 1. Date Leave blank; APS will fill in date. 2. Route to Include complete address of the ACS, Customer Service unit, or Field Collection group where case is to be returned 3. From/Appeals Code Populated from ACMS 4. Description Select from Drop-Down Box 5. Taxpayer Populated from ACMS 6. SSN/TIN Populated from ACMS 7. WORKUNIT NO. Populated from ACMS 8. Tax Years/applicable tax periods Appeals hearing officer will verify all applicable periods are included on the Printable View (Formally Form 5402) 9. Type of Case Populated from ACMS 10. Category Code Populated from ACMS 11. Related Taxpayers Complete with related taxpayer information, as appropriate 12. Disposal Information Accounts Receivable Dollar Inventory (ARDI) Code 7 automatically populated; Premature Referral Code, Closing Code, Resolution Reason Code will be selected from "pick list;" Other - Optional 13. Special Features Short statute, Compliance Follow-up, Case involves an Operations Assistance Request (OAR) selected, as applicable; Other-Optional 14. Remarks and/or Supporting Statement Select appropriate closing information from pick list; for field-sourced CAPs, enter the email addresses of the originating RO and RO Group Manager. 15. Taxpayer Representative/Phone # Populated from ACMS 16. Appeals hearing officer Signature/Date Signs and dates 17. Approval / Date ATM signs and dates Note: A CAP withdrawal does not require an ATM signature.
Source: official text