CAP is available for taxpayers in the following situations: (1) before or after the IRS files a Notice of Federal Tax Lien or levies or seizes property, (2) if the IRS has terminated or proposed to terminate an installment agreement, rejected an installment agreement, or modified or proposed to modify an installment agreement (IRS Publication 1660
, Collection Appeal Rights (2012)).
If the IRS initially rejects the claim, the claimant has the right to an appeals process through the Collection Appeals Program, as explained in Publication 1660
, Collection Appeal Rights.
notes that "[t]he Office of Appeals is separate from and independent of the IRS Collection office that initiated the collection action.