Collection Due Process — Your Right to a Hearing

A Collection Due Process (CDP) hearing is a formal legal right under IRC Sections 6320 and 6330 that allows you to challenge IRS collection actions before they take effect. When the IRS files a Notice of Federal Tax Lien or sends a Final Notice of Intent to Levy (LT11, Letter 1058, CP504), you have 30 days from the date of the notice to request a CDP hearing by filing Form 12153. A timely filed CDP request generally halts levy action while the hearing is pending. At the hearing, you can challenge the underlying tax liability (if you did not have a prior opportunity to do so), propose collection alternatives such as an installment agreement or Offer in Compromise, and raise defenses including the expiration of the collection statute.

You must file Form 12153 within 30 days from the date on the Final Notice of Intent to Levy or the Notice of Federal Tax Lien Filing. The 30-day period is strict — it is not 30 business days, and the IRS determines timeliness based on the postmark date for mailed requests. If you miss the 30-day deadline, you may still request an Equivalent Hearing within one year of the notice date, but an Equivalent Hearing does not halt levy action while pending, and you cannot appeal an Equivalent Hearing determination to the U.S. Tax Court.

At a CDP hearing, you may: challenge the appropriateness of the IRS's collection action; offer collection alternatives including an installment agreement, Offer in Compromise, or Currently Not Collectible status; challenge the underlying tax liability if you did not receive a statutory notice of deficiency or did not otherwise have a prior opportunity to dispute the liability; raise spousal defenses such as innocent spouse relief; and raise the expiration of the Collection Statute Expiration Date (CSED) if the 10-year collection period has expired. The IRS appeals officer is required to consider whether the proposed collection action balances the need for efficient tax collection with your legitimate concern that the action be no more intrusive than necessary.

A CDP hearing is available when you request it within 30 days of the notice. CDP hearings provide: suspension of levy action while the hearing is pending; the right to appeal an adverse determination to the U.S. Tax Court within 30 days; and a full review by an impartial IRS appeals officer. An Equivalent Hearing is available if you request a hearing more than 30 days but within one year after the notice. Equivalent Hearings do not halt levy action, and the appeals officer's determination is final — you cannot appeal it to the Tax Court. Because of these differences, it is critical to file Form 12153 within the 30-day window.

CDP and CAP are both ways to challenge IRS collection actions, but they differ in important respects. CDP is triggered when the IRS files a lien or sends a final levy notice — you have a specific 30-day window to respond, and CDP provides Tax Court appeal rights. CAP (Collection Appeals Program) is available more broadly for other collection actions — such as a proposed levy before the final notice stage, rejection of an installment agreement, or a seizure of property — and is generally faster than CDP, but CAP decisions are binding on both parties and cannot be appealed. Our team evaluates which process applies to your specific situation and pursues the path that best protects your rights.

If you miss the 30-day deadline, you have two remaining options. First, you may request an Equivalent Hearing within one year of the notice date — but levy action continues during the hearing and the outcome is not appealable to the Tax Court. Second, you may still negotiate a resolution — installment agreement, OIC, or CNC status — directly with the IRS collection function. While these alternatives are less protective than a timely CDP hearing, they may still resolve the underlying problem. Acting quickly after receiving any IRS collection notice is critical to preserving maximum legal protection.

A timely filed CDP request generally halts levy action while the hearing is pending. If the IRS has already issued a levy — for example, a bank levy that has frozen your account or a wage levy that is being deducted from your paycheck — the CDP filing does not automatically release the existing levy. However, simultaneous with or following the CDP request, we can often negotiate a levy release based on economic hardship, an installment agreement, or other resolution grounds. The combination of a CDP filing (which protects future levy action) and a levy release request (which addresses the current levy) provides comprehensive protection.

You are not required to have representation, but CDP hearings involve legal arguments about the propriety of collection actions, the validity of tax liabilities, and the application of alternative collection outcomes. IRS appeals officers are experienced professionals who have handled many hearings. Having an experienced representative who understands CDP procedures, the types of arguments that are most effective, and how to present financial information in the IRS's preferred format can significantly improve your outcome. Our team prepares the Form 12153, gathers supporting documentation, presents arguments at the hearing, and handles all IRS communication.