IRS Collection Due Process Hearing Attorney
An IRS collection notice can involve more than a demand for payment. Certain notices also give you the right to request a Collection Due Process hearing with the IRS Independent Office of Appeals.
A timely request can preserve important rights while you challenge the proposed collection action or present a collection alternative. The first step is identifying the notice, the tax periods involved, and the deadline printed on it.
Todd S. Unger represents taxpayers in IRS collection disputes, including requests for Collection Due Process hearings and preparation of Form 12153.
Which Notices Can Give You CDP Hearing Rights?
Notices such as LT11, Letter 1058, and CP90 can provide notice of an intended levy and explain your Collection Due Process hearing rights. A notice concerning the filing of a federal tax lien can also provide a right to a hearing.
These notices do not all use identical deadline language. Many levy-related CDP notices provide a 30-day request period, while a lien notice states the deadline to request a hearing about the lien filing.
Do not calculate the deadline from memory or from the day you happened to open the envelope. Read the complete notice and use the deadline and submission instructions provided by the IRS. Calling the IRS to discuss the balance does not by itself extend a CDP hearing deadline.
How Form 12153 Works
Form 12153, Request for a Collection Due Process or Equivalent Hearing, is used to request review by the IRS Independent Office of Appeals. The request should identify the taxpayer, the relevant tax periods, the collection action being challenged, and the reasons for requesting review.
A useful explanation describes the issue and the relief you’re requesting. That might involve a proposed installment agreement, a hardship concern, a lien-related request, or a disagreement about whether the IRS followed required collection procedures.
Follow the submission instructions on your notice and the current form. Keep a complete copy of the request and evidence of timely submission. Don’t miss the filing deadline just because you haven’t assembled every supporting financial document yet.
Current IRS Form 12153
Use the current IRS form and follow the instructions contained in your collection notice.
What Can Appeals Consider?
Depending on the circumstances, Appeals may consider collection alternatives such as an installment agreement or Offer in Compromise, hardship issues, certain spousal defenses, and appropriate requests concerning a federal tax lien.
A CDP hearing is not an unrestricted opportunity to reopen the underlying tax liability. Whether you can dispute the existence or amount of the tax depends in part on whether you previously received a notice of deficiency or otherwise had an opportunity to dispute the liability.
The request and supporting documents should explain both the issue and the relief being requested.
Does Requesting a Hearing Stop Collection?
A timely CDP hearing request generally restricts levy action for the tax periods under review, subject to applicable exceptions. It does not erase the tax debt, eliminate interest, or necessarily prevent the filing of a Notice of Federal Tax Lien.
The IRS collection limitation period is also generally suspended during the CDP process. That means a hearing request can affect more than the immediate levy dispute and should be evaluated as part of the larger collection strategy.
What Happens If the CDP Deadline Has Passed?
If the deadline for a timely Collection Due Process hearing has passed, an Equivalent Hearing may still be available within the applicable request period.
An Equivalent Hearing does not provide all of the same statutory protections as a timely CDP hearing. In particular, it generally does not provide the same levy suspension protection or the same right to seek Tax Court review of the Appeals decision.
Equivalent-hearing deadlines also depend on the type of collection notice. Have the applicable dates checked rather than assuming the levy and lien deadlines are identical.
Preparing for the CDP Hearing
Gather the complete IRS collection notice, related correspondence, relevant tax returns, payment records, and any financial information supporting the collection alternative you intend to request.
Identify any missing returns or current tax obligations that may need to be addressed. Appeals may request additional documents, explanations, or updated financial information before evaluating a collection alternative.
Keep copies of everything submitted and maintain a record of communications with Appeals.
After a CDP determination, read the determination letter immediately. It explains any deadline for seeking judicial review. An Equivalent Hearing decision generally does not carry that same Tax Court review right.
Received a Final IRS Collection Notice?
A CDP deadline can affect your appeal rights and the IRS collection process. Todd S. Unger can review the notice, tax periods, deadline, and available collection alternatives.
Collection Due Process Hearing FAQs
Common questions about Form 12153, CDP deadlines, IRS Appeals, and collection alternatives.