Collection Due Process
Collection Due Process (or CDP) is a legal hearing to contest certain IRS debts. This could benefit you if you believe you do not owe a tax that the IRS is trying to collect from you. It can also benefit the taxpayer because a CDP hearing can be used as an opportunity to set up different ways of payment if you do owe the tax, assuming you still qualify for the hearing.
You are only eligible to have a CDP hearing if you have received one of the following from the IRS:
Notice of Federal Tax Lien
Final Notice of Intent to Levy
So, how do I request a CDP hearing?
- You must file within 30 days of receiving your eligible notice
- You must complete Form 12153 (Request for a Collection Due Process or Equivalent Hearing)
- Make sure to carefully identify your reason for disagreeing with the IRS’s decision against you
These steps must be taken in order to file a CDP. However, you can still file for an equivalent CDP if you are past the 30 day limit. This will allow you a hearing but you cannot appeal an equivalent CDC ruling.
After your CDP hearing, you will receive a written determination of the hearing from the IRS. If you do not agree with the results, you can appeal a timely filed CDP (a CDP that was filed within 30 days of eligible notice).
It’s important to know:
- Most CDP hearings are held over the phone. Face-to-face hearings are available by request.
- The IRS cannot collect from a taxpayer while they are waiting for a CDP hearing that they have timely requested. However, the IRS can collect while a taxpayer is waiting for an equivalent hearing (a CDP request sent after the 30 day limit).
- It may take months from the time you submit your CDP request to have your hearing.
- During a CDP hearing you may NOT raise an issue that you have previously discussed at another hearing.