Requesting a Collection Due Process Hearing or CDP

Knowing your tax rights

Have you received a lien or levy notice from the IRS? 

Under the collection due process program you can request a hearing if you have received one of the following:

• Notice of Federal Tax Lien 

• Final Notice - Notice of Intent to Levy 

• Notice of Jeopardy Levy 

• Post Levy Collection 

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How do I go about requesting a hearing? You can respond to the notice you received requesting a collection due process hearing. Be mindful of the postmark date and make sure it is mailed within the response time given to you on the IRS letter. 

If you don’t want to go at this alone, you can hire a tax attorney or enrolled tax agent to represent you in a CDP hearing. Many of the tax resolution firms will have staff on hand equipped with dealing with these types of hearings. 

Again we remind tax payers why it is important to not ignore any IRS letters you do receive via mail or in your IRS.gov online account. Especially, if you know you have unpaid tax balances. 

If you owe more than $25,000 to the IRS or are in a non collectible or currently not collectible status with the IRS, a federal tax lien may have been filed against you. 

A tax lien may be filed against any unpaid tax year you owe for. After the IRS has filed a federal tax lien against you, you then have 30 days after the 5 day waiting period to request a hearing with the office of appeals. 

A Levy Notice is an intent to take your property or rights to property. In most cases the most common levy is the bank levy. Where the IRS will send a notice to the bank letting them know they are about to levy an account.  Again it is important for you to read the IRS notices as the IRS will warn you before taking action. 

When you receive a bill from the IRS there will always be two informational flyers enclosed. The IRS collection process and the collection appeal rights. Here you will find detailed instructions on how to request a CDP, CAP or an Equivalent hearing. 

To avoid having wages garnished, social security garnished or your bank account levied you need to address any unpaid tax balances. Granted it may seem like it can take the IRS a long time to catch up to you, but do you want to risk waiting until it is too late? 

Pro Tip: If you do not want to pay a third party service to assist you in understanding the payment options with the IRS. You can call and set up a payment plan with any IRS agent over the phone or even online. If you are near a local IRS office you can request an appointment online and talk to someone face to face. 

The IRS warns taxpayers against the many high priced tax resolution firms who promise to reduce or settle their tax liability for them. If you have fallen victim to a tax resolution firm and feel scammed please use this link to report them. Dirty Dozen: Watch out for Offer in Compromise ‘mills’ where promoters claim their services are needed to settle IRS debts