collection due process Archives | TAX CONTROVERSY 360

Latest tax updates: Section 7508A refund claims, whistleblower award eligibility, and court restrictions on IRS collection

by Kai M. Fenty and Edward L. Froelich | Jul 14, 2026 | Appellate Courts, Court Procedure Matters, IRS Appeals, IRS Guidance, Penalties, Significant Court Decision, Tax Reform, Tax Refunds

This roundup covers key Internal Revenue Service (IRS) developments from June 23 to July 2, 2026, including a notable executive nomination, new electronic filing procedures for COVID-19 disaster relief refund claims, and three significant court decisions shaping tax controversy.

June 23, 2026: US President Donald Trump nominated Jim Gadwood, a tax controversy partner at Miller & Chevalier, to serve as IRS chief counsel. The agency’s top legal official, the chief counsel is responsible for advising IRS leadership, issuing legal guidance, and overseeing the development of US Department of the Treasury regulations, including implementation of the One Big Beautiful Bill Act. Gadwood has focused his practice on federal tax controversies; transfer pricing; tax accounting; and representing large corporations, partnerships, and high-net-worth individuals before the IRS.

June 26, 2026: The IRS issued PLR 202626001, granting a limited liability company 120 days of § 9100 relief to file a late Form 8832 for electing to be treated as an association taxable as a corporation under the entity classification regulations. The IRS concluded that the taxpayer acted reasonably and in good faith and that granting relief would not prejudice the interests of the government after the taxpayer inadvertently failed to timely file its entity classification election despite intending corporate tax treatment from the desired effective date.

The taxpayer must file Form 8832 within 120 days and file all required federal income tax and information returns, including amended returns, consistent with the requested classification. The IRS emphasized that its ruling does not address the taxpayer’s eligibility to make the election or provide relief from any interest or penalties that may otherwise apply, and, as with all private letter rulings, the decision may not be cited as precedent.

July 2, 2026: The IRS announced an electronic filing option for taxpayers seeking to preserve potential claims for COVID-19 disaster relief refunds pending the government’s appeal in Kwong v. United States. Taxpayers with an IRS online account may electronically submit Form 843 before the July 10, 2026, deadline by identifying the claim as relating to Kwong. The IRS stated that it will process the claims only if the government is ultimately unsuccessful in its appeal. The Kwong decision held that the COVID-19 pandemic automatically postponed certain federal tax deadlines until July 10, 2023, potentially entitling taxpayers to refunds of penalties and interest previously assessed for late filing or payment. The IRS continues to challenge that ruling, but the new filing procedure allows taxpayers to preserve potential refund claims while the appeal remains pending.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Recent court developments

June 29, 2026: In White v. Commissioner, T.C. Memo. 2026-56, the US Tax Court held that the IRS abused its discretion by sustaining a proposed levy to collect restitution-based assessments (RBAs) under § 6201(a)(4) because the collection action conflicted with a prior US Department of Justice [...]

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Weekly IRS Roundup October 4 – October 8, 2021

by McDermott Will & Emery | Oct 11, 2021 | IRS Appeals, IRS Guidance, Tax Reform, Tax Refunds

Presented below is our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of October 4, 2021 – October 8, 2021. Additionally, for continuing updates on the tax impact of COVID-19, please visit our resource page here.

October 4, 2021: The IRS released a practice unit, providing tax law and audit steps for reviewing a reseller’s uniform capitalization cost computations under section 263A. The practice unit focuses on the simplified production method and does not cover the final section 263A Treasury Regulations that were effective November 20, 2018.

October 4, 2021: The IRS published a news release, announcing 18 self-study seminars available online through the IRS Nationwide Tax Forums. The seminars cover topics such as the gig economy and virtual currency.

October 4, 2021: The IRS published instructions for Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)) concerning:

Guidance under section 1446(f) (withholding on partnership interest dispositions)
New lines 6a and 6b (addressing foreign tax ID number (FTIN) matters)
Tax treaty benefits claims (requiring representations)
Section 6050Y reporting (covering life insurance contracts and reportable death benefits)
Electronic signatures (updated to reflect new guidance)

October 5, 2021: The IRS published a news release, announcing that Free File remains available through October 15 for taxpayers who still need to file their 2020 tax returns. Free File is the IRS’s public-private partnership with tax preparation software industry leaders to provide their brand name products for free.

October 5, 2021: The IRS released a memorandum, expanding the criteria for collection due process cases that qualify for a rapid response appeals process under IRM 8.22.6.2 and related subsections.

October 5, 2021: The IRS released a memorandum concerning interim guidance regarding the IRS Independent Office of Appeals’ steps and procedures for its nationwide pilot program: The Appeals Electronic Case Files Initiative for Large Business & International (LB&I) report generation software (RGS) examination cases. This guidance is applicable to LB&I RGS International Individual Compliance cases only and excludes other large cases such as Tax Equity and Fiscal Responsibility Act of 1982 cases, Bipartisan Budget Act of 2015 cases and Syndicated Conservation Easement cases.

October 5, 2021: The IRS released a memorandum updating procedures where an organization requests a change in a section 501 subsection during the application process by submitting one application form to replace a different application form. The procedures are effective 30 days after issuance of the memorandum and supersedes those in TEGE-07-0421-0010 (April 29, 2021).

October 7, 2021: The IRS published a program letter indicating that, in Fiscal Year 2022, Tax Exempt (TE)/Government Entities (GE) commissioners expect to invest in new resources to expand outreach to the exempt sector as well as increase their enforcement staff.

October 8, 2021: The IRS released its weekly list of written [...]

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Fourth Circuit Clarifies the Role of the Collection Due Process Hearing

by Joshua M. Ellenberg | Mar 10, 2017 | Appellate Courts, IRS Guidance, Transfer Pricing Resource, Uncategorized

In Iames v. Commissioner, No. 16-1154, the US Court of Appeals for the Fourth Circuit upheld the US Tax Court’s ruling that once a taxpayer has unsuccessfully challenged his tax liability in a preassessment hearing before the Internal Revenue Service (IRS) Office of Appeals, he is precluded from challenging his tax liability in a collection due process (CDP) hearing under Internal Revenue Code (IRC) Section 6330.

IRC Section 6330, enacted by Congress to protect taxpayers from abusive or arbitrary collection practices, provides a set of procedural safeguards for taxpayers facing a potential levy action by the IRS: notice, an administrative hearing and judicial review. More specifically, before collecting a delinquent tax through a levy on a taxpayer’s property, the IRS must notify the taxpayer at least thirty days in advance of his right to an administrative hearing before the IRS Office of Appeals. IRC Section 6330(a) and (b). After the Office of Appeals makes its determination, the taxpayer may then petition the Tax Court for judicial review. IRC Section 6330(d)(1).

In general, the taxpayer may raise “any relevant issue relating to the unpaid tax or the proposed levy” at the CDP hearing. IRC Section 6330(c)(2)(A). There are, however, certain restrictions as to the circumstances under which a taxpayer may bring a CDP challenge. Under IRC Section 6330(c)(2)(B), a taxpayer can dispute the existence or amount of the underlying tax liability but only so long as he “did not otherwise have an opportunity to dispute such tax liability.”

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