CCA 200953025: Denials of discharge requests can be appealed through CAP

Plain-English summary

Chief Counsel advice addressed whether the denial of a request to discharge property carried Collection Appeals Program appeal rights when the IRS had offered alternatives. It explained that the program is governed by the Internal Revenue Manual and is not generally based on the Code or regulations, except for installment agreements. After consulting Collection Policy, Counsel concluded that a denial for any reason would be subject to appeal rights, regardless of the alternatives offered.

Ruling snapshot

• Question: Does denial of a property discharge request carry CAP appeal rights when alternatives were offered?
• Outcome: Advice given
• Key authorities: IRM 5.19.8.1; IRC §§ 6331 and 7122

Full text (IRS public release)

ID: CCA_2009121510061150 Number: 200953025
Release Date: 12/31/2009
Office: ----------
UILC: 6325.00-00

From: -----------------------
Sent: Tuesday, December 15, 2009 10:06:19 AM
To: -----------------
Cc:
Subject: RE: Advisory Opinion

The Collection Appeals Program is an administrative program governed by the IRM. It is not based on the Code or the regs, except with respect to installment agreements, see IRC 6331, 7122. Unless a legal issue is present as well, questions concerning interpretation of the IRM should be directed to Collection Policy rather than Counsel.

IRM 5.19.8.1 provides that "Taxpayers have the administrative right to appeal ... after the denial of a request for discharge." We checked with Collection Policy and they agreed that a denial for any reason would be subject to appeal rights, regardless of alternatives offered.