Attachment to Form 9423, Collection Appeal Request, Block 15
Taxpayer: [Name as shown on Form 9423] TIN: [SSN or EIN]
Type of tax and periods appealed: [Form 1040 / 941 and periods]
Collection action appealed (block 14): [Notice of Federal Tax Lien filed [date] / levy served on [source] dated [date] / proposed levy / seizure of [property] on [date] / rejection, modification or termination of installment agreement by letter dated [date]]
Collection employee: [Revenue officer or ACS name and ID] Group manager: [Name, if known]
1. Request for a manager conference and timing
[For lien, levy and seizure appeals: On [date] the taxpayer's representative requested a conference with the collection employee's manager. The conference was held on [date] by telephone with [manager name]; no agreement was reached. The representative told the manager at the conference that the taxpayer would submit Form 9423. This form is submitted on [date], within three business days of the conference.]
[If no conference was offered: The conference was requested on [date]. No manager or designee contacted the taxpayer within two business days. This Form 9423 is submitted within four business days of the request, as the form instructions allow.]
[For installment agreement appeals: The IRS [rejected / proposed to modify / proposed to terminate / terminated] the taxpayer's installment agreement by [letter or notice number] dated [date]. This appeal is submitted within 30 days of that date. A manager conference is not required for this appeal. Delete the two paragraphs above.]
2. The action appealed and why it is inappropriate
[State the one action under appeal and the facts that make it inappropriate under law, regulation or IRM procedure, for example: The levy on the taxpayer's [bank account / wages] creates an economic hardship within IRC 6343(a)(1)(D): the Form 433-A enclosed shows monthly income of $[amount] against allowable expenses of $[amount]. OR: The NFTL was filed on [date] while the taxpayer's installment agreement dated [date] was current and the agreement did not provide for an NFTL. OR: The IA was rejected on the ground that the taxpayer can pay $[amount] per month; the enclosed Form 433-B shows ability to pay of $[amount] after allowable expenses.]
[Cite the IRM section Collection did not follow, if any, e.g. IRM 5.11.1 levy prerequisites, IRM 5.12.2 NFTL filing determination, IRM 5.14 installment agreement procedures.]
3. Proposed resolution
The taxpayer proposes that Collection [release the levy and accept an installment agreement of $[amount] per month beginning [date] / withdraw or withhold the NFTL pending [event] / accept the installment agreement as proposed at $[amount] per month / reinstate the installment agreement on the original terms, the missed payment having been made on [date]]. [Describe compliance: all required returns are filed and current estimated payments or deposits are being made.]
4. Documents enclosed
- Copy of [NFTL, levy, Notice of Seizure or IA letter]
- [Form 433-A or 433-B dated [date] with substantiation]
- [Proof of payments, bank statements, correspondence with the revenue officer]
- Form 2848
The taxpayer understands that Appeals reviews the appropriateness of the action listed above and that its decision is binding. Please direct all contact to the representative named on Form 9423.
[Signature: taxpayer OR representative, matching the box checked in block 16] [Date]
When CAP is the right tool
The Collection Appeals Program covers the actions listed in the Form 9423 instructions and IRM 5.1.9.4: a levy or seizure that has been or will be taken, an NFTL that has been or will be filed, nominee or alter ego liens, denials of lien certificates including withdrawal, and rejected, modified or terminated installment agreements, plus denials of requests to return levied property. For the program as a whole see the Collection Appeals Program and Form 9423.
It is a narrow review. IRM 8.24.1.2 says “Appeals does NOT consider alternatives to the issue under appeal, but solely determines the appropriateness of the issue under appeal.” Liability is off the table: IRM 5.1.9.4.1 says “CAP cannot be used to determine a taxpayer’s liability including reopening examinations or claims for refund.” Trust fund recovery penalties, offers in compromise, penalty appeals and audit reconsideration all have their own routes. The Form 9423 instructions add: “You cannot obtain a judicial review of Appeals’ decision following a CAP.”
When a CDP notice is on the table, compare the two. IRM 8.24.1.2 says a taxpayer who requests both on the same levy or lien “must choose one or the other.” CDP offers collection alternatives and Tax Court review; CAP offers speed. See CDP hearings and the CDP request attachment.
The clock the statement has to prove
IRM 5.1.9.4.2 opens with “There is no deadline for requesting a CAP appeal in most situations,” but the stay of collection depends on short windows, and Appeals returns a case as a premature referral if the manager conference was skipped or the appeal is untimely (IRM 5.1.9.4.3). Section 1 of the template documents the dates so neither happens.
| Action | Step the statement must show | Source |
|---|---|---|
| Lien, levy, seizure | Conference with the collection manager requested and held; intent to file stated within 2 business days; Form 9423 received or postmarked within 3 business days of the conference | Form 9423 instructions; IRM 5.1.9.4.2 |
| No manager callback | Conference requested; no contact within 2 business days; Form 9423 within 4 business days of the request, with the request date noted in block 15 | Form 9423 instructions; IRM 5.1.9.4.2 |
| Seizure | Appeal to the manager within 10 business days after Form 2433, Notice of Seizure | IRM 5.1.9.4.2 |
| Rejected, modified or terminated IA | Form 9423 within 30 days of the rejection, proposed modification, proposed termination or termination; no conference required | IRM 8.24.1.3.4; IRC 6159(e), 7122(e) |
The manager conference is mandatory for lien, levy and seizure appeals: “Taxpayers or representatives who make themselves unavailable to the manager for the mandatory discussion will not be entitled to a CAP appeal.” A Form 9423 received within a reasonable time after the conference, such as ten business days, still gets a CAP appeal, but the stay of collection is no longer required after three days.
What each section does
Section 2 answers block 15. The form asks you to “Explain why you disagree with the collection action(s) you checked above and explain how you would resolve your tax problem.” IRM 8.24.1 says the review is for “appropriateness of the action, proposed or taken, based on law, regulations, policy, and procedures (national and local),” so a specific procedural failure (no NFTL filing determination, levy during a pending IA, hardship ignored) is more useful than a general complaint.
Section 3 is the resolution. Appeals will not negotiate an alternative, but it will direct Collection; the IRM example of a rejected IA has Appeals computing ability to pay from the Form 433-B and directing an agreement at that figure if the taxpayer agrees.
Section 4 lists the file. IRM 5.1.9.4.3 says the transmittal to Appeals should include Form 9423, the lien, levy or seizure documents, Form 433-A or 433-B and other relevant documents, and that “Any narrative statement included must be limited to a neutral list of documents and neutral statements.” Put everything in the enclosures, because new information may go back to the revenue officer for comment under the ex parte rules. Financial forms are covered at collection information statements.
Signature. Form 9423 block 16 has one box each for the taxpayer and the representative and says “only check one box.”
Where it goes and what Appeals does
- Submit Form 9423 and this attachment to the Collection office that took the action. The form instructions say: “Never forward your request for an Appeals conference directly to Appeals.” Fax or hand it over at the conference; the IRM notes the time frame is too short for mail in most cases.
- Appeals tries to hold a conference within 2 business days of receipt and to decide within 5 business days; NFTL withdrawal, discharge, IA and seizure cases normally take up to 15 business days (IRM 8.24.1.3).
- During the appeal, “Normally, we will stop the collection action(s) you disagree with until your appeal is settled, unless we have reason to believe that collection or the amount owed is at risk” (Form 9423 instructions). For IA appeals, levy is barred by statute during the 30 days and the appeal.
- Appeals issues a closing letter. IRM 5.1.9.4.4: “Decisions by Appeals are binding on the taxpayer and Collection.”
Mistakes that get a CAP returned
- Filing Form 9423 for a levy or lien without the manager conference, or being unreachable when the manager calls.
- Arguing the underlying tax. Liability challenges belong in CDP, audit reconsideration or a refund claim.
- Appealing a second levy on the same bank account with no new issue. IRM 5.1.9.4 allows a new CAP only for a legal defect, changed circumstances or new issues.
- Requesting CAP and CDP on the same action without choosing. Appeals may close the CAP and give the CDP hearing.
Questions practitioners ask
Can I appeal an installment agreement rejection without talking to the manager?
Yes. IRM 5.1.9.4.2 says the discussion with the group manager on IA rejections, modifications and terminations “is not mandatory due to the statutory right to appeal these actions,” though it is encouraged. The deadline is 30 days.
Does a CAP decision prevent raising the same issue in a later CDP hearing?
It can. IRM 5.1.9.4 says an issue decided in a CAP that concluded before the CDP request, where the taxpayer participated meaningfully, may not be raised in the CDP hearing unless new information is presented; Appeals decides.
What if Collection levies anyway during the appeal?
IRM 5.1.9.4.4 allows levy during a CAP only where collection is at risk, the issues are frivolous or the appeal is solely for delay, with group manager concurrence and a check with Appeals first. Raise it with the Appeals hearing officer and the Collection manager.
Is a decision in the client's favor final?
It binds Collection, but IRM 5.1.9.4.4 says any agreement is voidable if the taxpayer withheld pertinent information or made a false representation.