I have an RO that wants to seize my client’s rental property. She (RO) mentioned it on a phone call about a month ago verbally and now the client missed a payment last month. We just received a fax yesterday putting this in writing that she intends to seize the property. At what point is a proposed seizure by the RO appealable? Can it be appealed after a verbal threat, written threat, or is there another action or form that must be sent. You must request a manager conference first and then cap appeal, is this right?
Send a written request for a phone conference with the manager. If the manager agrees with the RO then you can file a CAP Appeal – IRS Form 9423.
I would need more info, but the IRS will generally consider this when the 10-year statute is running out and there is equity. Is that the case here?
You need to pitch that there is a lot of time left on the statute, that the property creates an income stream necessary for the taxpayer to live, they have made every attempt to sell and tap the equity, etc. Assuming this applies of course….
Would allowing the IRS to seize these properties be a bad strategy or defacto malpractice. Or should I absolutely appeal just to CYA on my end? The client owes 1.2 million and two of the three properties are dilapidated and boarded up. The third is a duplex worth maybe 70k generating 1k/mo of rent. The client is of the opinion “fine let them have them”.