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What is an IRS Cap Appeal?

May 17, 2024

If you received one of those CP504B threatening to levy your bank account and if you manage to read through it, it says in the letter you can file a CAP Appeal. It is IRS Form 9423. What is a CAP Appeal and how can it help you?

First of all, this is not a do-it-yourself project. The IRS has set up a CAP Appeal to determine if the action taken by the IRS is appropriate based on IRS regulations.

IRS cap appeal form signing

The IRS has hired 80,000 new personnel. They are untrained and unsupervised. They do not know or care about what the IRS regulations are. They simply want to say you do not have a right to file a CAP Appeal. The faster they can reject your CAP Appeal the better for the IRS.

The filing of a CAP Appeal can work in some instances.

It will depend on how well you present your case and of course who is handling the case on the IRS end. There are numerous avenues the Tax Resolution Specialist can employ to handle your case. This is where experience comes in. 

I will give you one example. The taxpayer is in a IRS approved installment agreement. All payments are current. Per the IRM (the IRS code) the IRS is forbidden from levying in that situation. Yet the taxpayer gets the CP504B threatening levy. In this case filing a CAP Appeal is a good tool because the IRS is wrong here. The tax resolution specialist points out where the IRS has violated the IRM and moves forward with the CAP Appeal.

So many of these provisions are designed to protect the taxpayer and yet enforce the law. Always enlist a seasoned tax resolution specialist to help you with a CAP Appeal



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