Collection Due Process Hearings Tax Attorneys in Fairfax, VA
A Collection Due Process (CDP) Hearing is available if you get one of the following four notices from the IRS:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320.
- Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing.
- Notice of Jeopardy Levy and Right of Appeal.
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing.
When you receive one of these notices, you have 30 days, from the date of the notice, to file a request for a CDP Hearing protesting the IRS’s collection action. Even after the 30 days, it is often possible to file a request for a similar appeal, called a CDP “Equivalent Hearing.” After the hearing, the Appeals Officer will issue a written determination letter (a “decision letter” is issued after an Equivalent Hearing). If you disagree with the determination, you can appeal to the United States Tax Court. There are no appeal rights after a decision letter.
We find this CDP Hearing process to be extremely helpful to clients in contesting and preventing inappropriate IRS collection action. The Appeals Officer is someone entirely outside the IRS Collection Division who takes an impartial look at the case to determine whether the proposed collection action (levy, seizure, etc.) is appropriate. You can propose other ways to resolve the tax (installment agreement, offer in compromise, innocent spouse relief, etc.), and often the Appeals Officer agrees that one of these approaches is in fact a better way to resolve the unpaid taxes. You can also contest your liability for the underlying tax, as long as the liability has not been the subject of a previous Appeals Office determination or a final Tax Court decision. You should also know that no collection action can be taken against you after a CDP hearing has been requested, or while the determination of the Appeals Officer is being challenged in Tax Court. The bottom line is that the CDP process can often be quite effective in resolving your tax problems.
WANT MORE INFORMATION?
See our article, Enhanced Opportunities to Appeal Collection Actions, published by the Maryland Society of Accountants in “The Freestate Accountant” as part of Mr. Haynes’ series on “Dealing with the IRS Collection Division.”
IRS Form 12153 (Request for Collection Due Process Hearing)