A recent Tax Court ruling (Tooke, 164 T.C. No. 2, 2025) clarified that IRS Appeals Officers are not “Officers of the United States” and do not require Presidential appointment. Some taxpayers have attempted to argue that this undermines the IRS collection process, but the court dismissed this claim.
Let’s break down what this means and why it matters for taxpayers.
Understanding the case
A taxpayer with unpaid taxes from 2012 to 2017 requested a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals. Instead of disputing the tax debt, they argued that:
- IRS Appeals Officers authorize levies and liens, meaning they should be appointed by the President and confirmed by the Senate.
- Since Appeals Officers aren’t appointed through this process, they claimed IRS tax collection is unconstitutional.
The Tax Court rejected this claim, ruling that IRS Appeals Officers do not qualify as high-level government officials requiring Presidential appointment.
Why the court rejected the argument
The court ruled that IRS Appeals Officers do not hold significant authority to be considered “Officers of the United States.” Here’s why:
- 1) They Do Not Function as Judges – Unlike Tax Court judges, Appeals Officers cannot issue subpoenas, take testimony under oath, or enforce summonses.
- 2️) They Do Not Set Legal Precedent – Their decisions follow IRS guidelines but do not create binding legal rulings.
- 3) They Primarily Facilitate Dispute Resolution – Their role is administrative, focusing on tax settlements and hearings, rather than lawmaking or enforcement.
As a result, the IRS Appeals Office continues to operate as usual, and taxpayers cannot use this argument to evade tax collections.
What this means for taxpayers
- IRS Appeals Officers still have full authority to review IRS liens and levies.
- Constitutional challenges against tax collection have no legal basis. Courts have consistently ruled against such arguments.
- Taxpayers still have rights! If you receive an IRS levy or lien notice, you can request a CDP hearing to appeal the decision.
Key Takeaways
This ruling serves as a reminder that arguments challenging the legitimacy of IRS authority are unlikely to succeed in court. Instead of relying on legal loopholes, taxpayers should focus on legitimate IRS appeals options to resolve tax issues effectively.
If you’re facing an IRS collection action, understanding your rights and following proper procedures is essential.
Need assistance with accurate and compliant tax return preparation? Contact us today at contact@americantaxfilings.com to ensure your tax filings are handled professionally and correctly.
