Current Due Process

What Is a Collection Due Process (CDP)?

A Collection Due Process hearing could be your last chance to resolve whatever tax controversy you have with the IRS. The IRS will issue a IRS Letter 1058, Notice of Intent to Levy and Right to Request a Hearing  or it will send IRS Letter 3172 , Notice of Federal Tax Lien File and Your Rights To a Hearing before it sends a levy. After that notice you must have a CDP hearing within 30 days of the notice. To request a hearing you must fill out IRS Form 12153 for a hearing.

 

What Is A Notice Of Federal Tax Lien?

A federal tax lien can have some big consequences. Liens can be attached to your home for example, making it difficult to refinance a home. It also puts a scare on potential buyers since the home was associated with the IRS in such a negative way.

How Can I Avoid A Federal Tax Lien?

What Is A Notice Of Intent To Levy?

A Notice of Levy is a lot more serious. For example if you receive a Notice to Levy your business bank account, the IRS will immediately attempt to seize funds directly out of that bank account. A levy under US Federal law is an administrative action by the IRS to seize property to satisfy a tax liability. The levy “includes the power to seizure by any means”. Once the IRS levy is in place they will begin to seize assets until the tax liability is paid. If you happen to disagree with anything the IRS says you owe, you can file the CDP (Form 12153) request only within 30 days of these notices.

Examples of a responsible person or group of people

Land

Businesses

Properties

Automobiles

How Can I Stop A Levy?

How Can I File A Collection Due Process Request?

It is best to speak with a tax professional when it comes to filing for a CDP, the tax professional will IRS form 12153, Request for a Collection Due Process Equivalent Hearing. The form will require some background information and the reason why you believe the IRS should not pursue the lien or levy against you. You can always send this form back to the address that sent you the notice.

How Much Time Is There To File A CDP Hearing Request?

You will have 30 days to the date of the letter. They are extremely strict with this requirement and failing to file within the 30 day period will result in you losing the right to CDP hearing. If the CDP request is filed on time, the IRS must put a hold on collecting on behalf of the debt amount pending the outcome of the hearing. If you happen to miss the 30 day deadline you can still file for an “Equivalency Hearing” but the IRS is already authorized to pursue the debt against you.

Next Steps:

Once you get either IRS Letter 3172, Notice of Federal Tax Lien File and Your Rights to a Hearing or IRS Letter 1058, Notice of Intent To Levy and Notice of Your Rights to a Hearing, it’s time to request the CDP hearing. Try not to let the 30 day period go by and miss your opportunity. We are here to assist with any part of this process beginning to end. Feel free to contact us for help regarding your situation.

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