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 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. If you disagree with the decision,
you can appeal to the United States Tax
Court.
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
we can use the CDP process on your behalf
quite effectively to resolve your tax
problems.
WANT
MORE INFORMATION?
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."
