Know if You Should File a Collection Due Process Appeal

If you file a Collection Due Process Appeal, you will effectively put a hold on any IRS action to collect the tax debt until you have a hearing with an Appeals Officer.  In most cases this is the proper action to take to make sure you have time to present a settlement option that will be in your best interest. However, there are times when filing a Collection Due Process Appeal will do you more harm than good.

Two examples of when you would not want to file for a CDP Appeal are when you want the statute of limitations to run out or you want to discharge your tax liability in bankruptcy.  The CDP Appeal affects the 3 year rule and 240 day rule with regards to when a bankruptcy can be filed to discharge your tax debt.

An Arizona IRS resolution professional can provide essential advice in this area.  Contact Scott Allen E.A. of Mesa AZ at 480-926-9300 to schedule a free initial consultation.  The decision of whether to file a CDP Appeal is too important to make on your own.  Your success in settling your IRS problem will depend on taking the rights steps that provide you the right settlement option.