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Tax Appeals: Collection Due Process Hearings

The Collection Due Process (CDP) hearing is often your last chance to avoid an IRS levy or the filing of a federal tax lien. It is a critical right that all taxpayers have before the IRS takes certain enforced collection actions, but you only get this right if you request it.

How to Request a CDP Hearing

You need to request a CDP hearing in writing. You can use Form 12153 or make your own written request, as long as it contains the right information.

You have 30 days from the date of the IRS notice to request your CDP hearing. If your request is late, you can still request an equivalent hearing, but you will lose some important rights.

You don’t need to dispute the tax liability you owe in order to request a CDP hearing. You can use this process to suggest collection alternatives, such as installment agreements, Offers in Compromise, or innocent spouse relief.

Benefits of the CDP Hearing

First and foremost, you can delay the IRS levy or lien filing while your appeal is pending. This benefit is not guaranteed if you request an equivalent hearing.

The IRS can only move forward with a levy before your appeal is completed if the tax collection is in jeopardy or certain other exceptions apply. In most cases, they will hold off on the levy until your appeal is done.

You also have the right to appeal the decision of the CDP hearing in Tax Court. This is another benefit you lose if you miss the 30-day deadline.

You can withdraw your request for a CDP hearing at any time if you work out a deal with the Collection office. 

When to Use the CDP Hearing

The CDP hearing is only available to cover certain collection issues. You should receive one of the following notices:

  • The filing of a Notice of Federal Tax Lien
  • The Notice of Intent to Levy
  • Notice of Jeopardy Levy
  • Notice of Levy on Your State Tax Refund
  • Post Levy CDP Notice

For other collection issues, you may need to use the Collection Appeals Program instead.

Contact a tax attorney if you have received a CDP notice and want to stop an imminent IRS collection action.

The Gartzman Law Firm handles all types of IRS appeals, including CDP hearings. Use our contact form to request a consultation with an Atlanta tax resolution attorney.