The Collection Appeals Program, or CAP, is the appeal most taxpayers never hear about. It is available when your Collection Due Process window has passed. It moves quickly. And when Appeals decides a CAP case, its decision binds the IRS collection function.
What CAP covers
IRM 5.1.9.4 lists the actions a taxpayer can appeal under CAP, including a “levy or seizure action that has been or will be taken.” It also covers rejected, modified or terminated installment agreements, and disallowances of requests to return levied property under IRC 6343(d).
For wage levies, that means you can use CAP to challenge a levy that is about to be served or one already in place, and to challenge a refusal to release it.
The IRM also explains when you can bring a second CAP on the same asset: when there is a newly discovered legal defect, your circumstances have changed, or new issues have arisen.
What CAP does not cover
IRM 5.1.9.4.1 lists exclusions with their own appeal routes, including rejected offers in compromise, trust fund recovery penalty assessments, penalty appeals, audit reconsiderations and claims for refund. CAP also cannot be used to determine the underlying tax liability.
And timing matters. IRM 5.1.9.4.2 gives this example: the taxpayer cannot appeal a levy after the IRS has already received the levy payment; instead, the taxpayer needs to file an administrative claim for return of the levied proceeds. For a continuous wage levy, that means CAP is most useful for stopping future paychecks from being taken. Money already received requires a return claim. See getting levied wages back.
No deadline, mostly
IRM 5.1.9.4.2 says there is no deadline for requesting a CAP appeal in most situations. The exceptions are seizures, which must be appealed within 10 business days of the notice of seizure, and installment agreement appeals, which have their own timing. It also warns that a delay in requesting an appeal may result in the taxpayer not being able to appeal the issue. With wages, every payday you wait is money that may only be recoverable through a claim.
How CAP works, step by step
1. Ask for a manager conference
CAP starts inside Collection. IRM 5.1.9.4.2 says a CAP request can be made verbally or in writing, and that a group manager must return the call for a conference within two business days. If your case is with a revenue officer, ask to speak to the revenue officer’s manager. If your case is with the IRS phone collection unit, IRM 5.19.8 covers collection appeal rights in that setting; ask for a manager.
2. If you do not agree after the conference, submit Form 9423
Form 9423 is the Collection Appeal Request. Under IRM 5.1.9.4.2, after the manager conference, a mailed Form 9423 must be postmarked within three business days to avoid collection action resuming. Because the window is short, the IRM suggests taxpayers submit Form 9423 at the conference, by fax or electronically.
3. Appeals decides, quickly
IRM 5.1.9.4.4 says Appeals tries to resolve CAP cases within five business days of receipt by the appeals officer, unless complexity requires more time, and will attempt to hold a conference within two business days of receipt.
4. The decision is binding
The same section states that decisions by Appeals are binding on the taxpayer and Collection, and that Collection will take the actions directed by the decision. If you then default on what Appeals directed, Collection is released from the terms.
CAP versus CDP
| CAP | CDP hearing | |
|---|---|---|
| Deadline | Generally none | 30 days from the CDP notice |
| Before or after levy | Either | Before the first levy for the period |
| Levy suspended | Collection generally waits on a timely Form 9423 | Yes, by statute, IRC 6330(e)(1) |
| Speed | Appeals aims for about five business days | Longer |
| Court review | No; Appeals decision is binding | Tax Court under IRC 6330(d) |
| Challenge the tax itself | No | Only in limited cases |
IRM 5.1.9.4 says you can request both a CAP and a CDP on the same event, and that the IRS should explain the differences so you can make an informed choice. If you are within the CDP window, start with the CDP hearing guide.
What to argue in a wage levy CAP
- The levy is creating an economic hardship. IRC 6343(a)(1)(D) requires release when the IRS determines that. Bring the financial statement. See economic hardship release.
- You entered or proposed an installment agreement. IRC 6343(a)(1)(C) requires release once you have entered into one. IRC 6331(k)(2) bars levy while a proposal is pending.
- The account should be CNC. IRC 6343(e) requires release of a wage levy as soon as practicable upon agreement that the tax is not collectible.
- A procedural defect. A missing CDP notice, a levy served while an offer or installment request was pending, or a levy on periods with an expired collection statute.
- Both spouses levied without proper approval. IRM 5.11.5.4.3 requires group manager approval to levy both spouses in the same household. See when both spouses owe.
What the manager conference sounds like
It is a phone call, usually short. The manager will want to know what you are appealing and why. Be specific. For example: “The wage levy is leaving me with $619 every two weeks. My rent is $1,100 a month and my documented basic expenses are $2,700. I am asking for a hardship release under IRC 6343(a)(1)(D), and I am sending my financial statement today.”
That statement does three things. It identifies the levy, names the release ground, and shows you have the numbers. Managers resolve a meaningful share of disputes at this stage because the facts are clear. If the manager says no, tell the manager you are submitting Form 9423, and do it the same day.
If your issue is that you have proposed a payment plan and the IRS has not acted, say that instead, and point to IRC 6331(k)(2), which bars levy while an installment agreement proposal is pending. See installment agreements and levy release.
Practical advice
Have the Form 9423 filled out before the manager conference so you can submit it immediately if the conversation does not resolve things. Bring your financial statement and documents to the conference itself. A well-documented hardship case often gets resolved at the manager level, without going to Appeals at all.
IRM 5.1.9.4.1 also notes the Taxpayer Advocate Service may be appropriate in some cases. If you are facing immediate harm and Collection is not responding, ask about it.
CAP is quick, binding and open long after the CDP window closes. It is the appeal for people who did not see this coming in time.