IRS Form 12153 Collection Due Process Hearing
If you receive a notice that the IRS intends to place a tax lien or levy your assets, you can request a Collection Due Process (CDP) hearing. Taxpayers can file IRS form 12153. These hearings allow you to appeal the IRS’s collection actions. They can potentially stop the lien or levy from happening.
What is a Collection Due Process Hearing?
A Collection Due Process hearing allows taxpayers to appeal IRS liens and levies. It is an informal hearing which can happen in person or over the phone. Oaths are not involved, and no transcript gets taken.
The hearing looks at the validity of the notice and relevant issues related to the unpaid tax. At the CDP hearing, you can attempt to obtain innocent spouse relief— that’s where you argue that your spouse or ex-spouse was exclusively responsible for the taxes owed. You may also work out a payment plan or suggest collection alternatives.
Essentially, the purpose of a Collection Due Process hearing is to figure out a compromise between the IRS’s need to collect taxes and your concerns about the collection activity. After the hearing, the IRS issues a Notice of Determination. It outlines the following elements:
- Whether or not the IRS delivered the lien or levy demand correctly—The IRS must hand-deliver these notices. Or, the IRS must send the notice via registered mail to your last known address and get a receipt that you received it.
- Whether or not a tax lien will take place
- Whether or not a levy will happen
- The details of any payment arrangements decided upon during the hearing.
- Whether or not the IRS accepted your request for innocent spouse relief or any similar defenses.
- Whether or not tax relief was offered.
After receiving the Notice of Determination, you have 30 days to appeal to the Tax Court or the US District Court.