How to Appeal Collection Actions with IRS Form 9423 (Collection Appeals Request)

Guide to IRS form 9423 (Collection Appeal Request)

If you disagree with a collection action taken against you by the Internal Revenue Service (IRS), you can appeal using Form 9423 (Collection Appeal Request). This is a form of tax appeal that is a different appeals process than the Collection Due Process (CDP) hearing.

Using Form 9423 is faster and more efficient than the CDP — but the decision is final so you should navigate this process carefully.

A tax professional can help you file Form 9423. Our tax attorneys at the W Tax Group are experienced with this form and understand what details are likely to change the agency’s actions — to get help, contact us today.

Alternatively, you can fill it out and file it yourself. Here is an overview of the essentials.

When to File Form 9423

You should file Form 9423 when you disagree with a collection action the IRS has taken, including the following:

  • Issuing of federal tax liens
  • Denial of requests to subordinate, withdrawal, discharge, or detach federal tax liens
  • Rejection of installment agreement (payment plan) request
  • Modification of installment agreement
  • Termination of installment agreement
  • Levy or proposed levy including bank account levy or wage garnishment
  • Asset seizure

When you file Form 9423, you can only appeal the collection action. You cannot use this form to appeal the amount of tax you owe — if you want to do that, you need to request a CDP hearing.

For appealing collection actions, however, this form can be more effective than a CDP because it offers a faster and easier process. You can typically expect a resolution in less than a month — sometimes in less than a week.

How to Fill Out Form 9423

Form 9423 requires basic details such as your name, Social Security Number or Employer Identification Number (EIN), phone number, address, type of tax, tax period, and amount due. Then, you tick a box to note the collection action you want to appeal. These details are all pretty straightforward.

You also must explain why you’re disputing the collection action and include documents that support your case. This can be the tricky part. You need to include the right details if you want to persuade the IRS to agree with you.

Appealing Liens, Levies, or Seizures with Form 9423

The appeals process is slightly different depending on the collection action you’re appealing against. Here are the steps to take if you want to appeal a lien, levy, or seizure:

1. Request a conference with a manager.

You should start by requesting a conference with the manager of the IRS employee who has been dealing with your case.

2. Tell the collection office you’re going to appeal.

If you cannot resolve your issue with the Collection Manager, you should reach out to the collection office within two days and let them know that you’re planning to submit Form 9423.

3. Postmark the form within three days of the conference.

Then, make sure you postmark the form within three days of your conference.

4. Respond to asset seizures within 10 days of the notice of seizure.

If you’re appealing a seizure, you have 10 days after you receive the notice of seizure to appeal to the collection manager. You need to act quickly in these situations. Once the IRS has seized your assets, they can be nearly impossible to get back — unless there was an error.

5. File form 9423 within four days if you were denied a managerial conference.

You should file form 9423 if you have requested a conference and were not contacted by a manager or their rep within two days of the request. In this case, make sure that you submit the form within four business days of the date you requested the conference. Also, note on the form that you made a request but weren’t contacted by management.

Appealing Disagreements with Installment Agreements

If you want to use form 9423 to appeal an issue related to an installment agreement, you have extra time. You simply need to file form 9423 within 30 calendar days of the date the action was taken. Give the form to the office or revenue officer who took the action.

What to Expect When You File Form 9423

The IRS will stop collection actions against your account when you file form 9423. The only exception is if the IRS believes that you present a significant risk of not paying — this is called jeopardy status and it’s only used in severe situations.

The IRS’s Independent Office of Appeals will ask the Collection Function to review your case. Then, the Office of Appeals will let you know what the Collection Function said, and you will have a chance to respond. After, that the Office of Appeals will make a decision on your case.

The decision is final so you want to choose your response carefully. Again, you can represent yourself. You can also have an immediate family member represent you, and if you’re appealing a business tax, your full-time employee, general partner, or a bonafide officer can represent you.

Your likely to have the best results if you have a tax professional represent you — choose from a tax attorney, a Certified Public Accountant (CPA), or an Enrolled Agent. Complete Form 2848 (Power of Attorney and Declaration of Representative) so they can represent you.

Get Help with Form 9423

At The W Tax Group, we have extensive experience representing clients with all kinds of tax concerns, from all over the country. We can help you decide if a Form 9423 appeal is right for your situation. Or, we can help you explore other options including a CPD hearing.

To learn more, contact us today. We can help you navigate the complex processes of the IRS or state tax agencies.