Whoever was advising the taxpayer in Creditron Financial Corporation, 2013 T. C. Memo. 217, filed 9/16/13 (and get those corporate returns in today, guys! Don’t waste time reading this blogpost), wasn’t down at National Harbor, MD last month, because the IRS’ presenters there made it very clear that the Collections Appeal Program is not the same as Collections Due Process. By a long way.

I’ll spare you the lengthy saga of Creditron and its unpaid 941s and FUTA. Creditron filed the returns but didn’t pay all the tax due, so IRS assessed and tacked on interest and additions. Creditron petitioned late from a CDP denial, so no Tax Court. Then Creditron asked for and got an equivalent hearing (again no trip to Tax Court from denial of taxpayer’s appeal).

But Creditron did file Form 9423 (more than once), looking for a Collections Appeal Program hearing. Which Creditron got, but lost again, as they were consistently noncompliant with paying their withholding taxes.

Of course, Judge Chiechi tosses Creditron’s petition on jurisdictional grounds.

As to the CAP vs CDP: “The Collection Appeals Program provides an administrative appeal for ‘certain collection actions’ and the rejection and termination of installment agreements. IRM pt. 8.24.1.1.1(1)-(3) (May 27, 2004). The IRM points out the distinction between a CAP Appeals Office hearing and an Appeals Office hearing, see, e.g., IRM pt. 5.1.9.4(1) (Jan. 1, 2007), and indicates that ‘[t]he taxpayer has the right to go to court on Appeals’ determinations under CDP but not under CAP, see IRM pt. 8.24.1.1.1(5).14.'” 2013 T. C. Memo. 217, at p. 28 (Footnote omitted, but I’m getting to it).

The omitted footnote: “Consistent with IRM pt. 8.24.1.1.1(5) (May 27, 2004), the instructions for Form 9423 informed the taxpayer that ‘[o]nce the Appeals Officer makes a decision on your case, that decision is binding on both you and the IRS. This means that both you and the IRS are required to accept the decision and live up to its terms.’” 2013 T. C. Memo. 217, at p. 28, footnote 14.

That means binding arbitration, guys. No review by Tax Court or anyone else. Take a Collections Appeal at your peril.