Collection due process hearing procedures

by | Aug 28, 2025 | IRS Procedures & Controversy

Here’s what HIVE AI had to say about “Collection due process hearing procedures”:

Collection Due Process (CDP) Hearing Procedures

What a CDP hearing is and when you can request one

  • A CDP hearing is an independent review by the IRS Office of Appeals of a proposed levy or a filed Notice of Federal Tax Lien (NFTL). It is intended to ensure the action is warranted and appropriate, and that collection alternatives were considered first
  • The IRS issues a pre-levy or post-levy CDP Notice and includes Form 12153. Delivery may be personal, left at your dwelling/business, or by certified/registered mail to your last known address. Post-levy notices must state the amount due and your CDP rights in plain terms

How and when to request the hearing

  • File Form 12153, Request for a Collection Due Process or Equivalent Hearing, to the address on your lien/levy notice. Calling the IRS does not extend the deadline; you must make a written request within the 30-day period starting the day after the notice date to secure a CDP hearing with judicial review rights
  • If you miss the 30-day window, you can request an Equivalent Hearing within one year (from the levy notice date, or within one year plus 5 business days of NFTL filing). Check the “Equivalent Hearing” box on Form 12153. Note: no Tax Court review rights for Equivalent Hearings

What happens after you file

  • Collection statute suspension and coding: A timely CDP request triggers a suspension of the 10‑year collection statute (CSED) while Appeals considers your case and through any Tax Court review; IRS uses TC 520 closing codes 76/77 to reflect the suspension and hearing type
  • Appeals will schedule a conference by phone, correspondence, or face-to-face if you qualify. Face-to-face may be denied for frivolous/delay issues. You may continue to work with the Collection office to resolve the matter and withdraw your hearing if you reach agreement

Issues you can raise at the hearing

  • You may raise appropriate spousal defenses, challenges to the appropriateness of collection, and collection alternatives such as installment agreements, offers in compromise, and “currently not collectible” status. Appeals may require filing of missing returns and financials to consider alternatives. All issues and supporting information should be presented to Appeals; issues not properly raised at the CDP hearing are generally barred from later judicial review
  • If you had no prior opportunity to dispute the underlying tax liability, you may raise it in the CDP hearing; otherwise, the focus is on collection, not liability. (Note: Equivalent Hearings generally cannot be appealed to Tax Court.)

Effect on collection during the hearing

  • Timely CDP requests suspend the collection statute and, in practice, collection on the specific action at issue generally pauses; after a timely CDP hearing, further collection is restricted pending the determination and any judicial review. For Equivalent Hearings, the 10‑year period is not suspended and the IRS may continue collection; seizure is permitted but generally not pursued during these hearings

Hearing format and your rights in the conference

  • Appeals conferences are informal and can be by phone, correspondence, or in person if you qualify. You may be represented; if during any in-person interview you state you wish to consult a representative, IRS must suspend the interview (collection interviews)

Determination letters and judicial review

  • For timely CDP hearings, Appeals issues a Notice of Determination. You may petition the U.S. Tax Court for review. CDP cases may be assigned to Special Trial Judges, and hearings are generally public with stenographic reporting
  • For Equivalent Hearings, Appeals issues a Decision Letter. There is no Tax Court review of the equivalent hearing decision; collection generally may continue during its pendency

Practical preparation and strategy

  • Raise all issues and submit all supporting documents at the hearing stage. Appeals may require current financials and unfiled returns before considering alternatives such as installment agreements or offers in compromise
  • If you want a face-to-face conference, avoid frivolous positions and be prepared with a viable collection alternative proposal and supporting financials. You can continue discussions with the originating Collection office and withdraw your hearing upon resolution

Special notes and statistics

  • CDP inventory is a substantial component of Appeals’ workload, with tens of thousands of cases pending annually, underscoring the importance of clear, complete submissions to expedite resolution
  • Requests for CDP hearings or Equivalent Hearings made on or after November 16, 2006, are governed by the current regulation at Treas. Reg. § 301.6330‑1

Key differences: CDP vs. Equivalent Hearing

  • CDP hearing
    • Must request within 30 days
    • Suspends collection statute and generally pauses collection on the action at issue
    • Ends with a Notice of Determination and Tax Court review rights
    • IRS levy restrictions apply during the pending period and judicial review
  • Equivalent hearing
    • Request within one year (or one year plus 5 business days for NFTL)
    • Does not suspend the 10‑year collection period; the IRS may continue collection
    • Ends with a Decision Letter and no Tax Court review (except limited innocent spouse issues)

Quick checklist

  • File Form 12153 within 30 days to preserve Tax Court rights; mail to the address on the notice and keep proof of mailing. The mailbox rule applies if postmarked within the period
  • Prepare to propose and document collection alternatives; file any missing returns and provide financials the IRS requests
  • Avoid frivolous positions; request a face-to-face conference only if you have substantive issues and supporting documentation
  • Understand that Equivalent Hearings preserve an Appeals review but not Tax Court rights, and do not suspend the 10‑year collection period

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