IRS Collection Due Process (what you need to know)

The purpose of a Collection Due Process hearing is to have Appeals review collection actions that were taken or have been proposed.

After Appeals has made their determination and you do not agree,
you can go to court to appeal the Appeals’ Collection Due Process determination. You can request a Collection Due Process hearing if you receive any of the following notices:

·       Notice of Federal Tax Lien Filing and Your Right to a Hearing

·       Final Notice—Notice of Intent to Levy and Notice of Your Right to a Hearing

·       Notice of Jeopardy Levy and Right of Appeal

·       Notice of Levy on Your State Tax Refund—Notice of Your Right to a Hearing

·       Notice of Levy and of Your Right to a Hearing

To request a Collection Due Process hearing, complete Form 12153, Request for a Collection Due Process or Equivalent Hearing or a written request containing the same information as contained in Form 12153, and send it to the address on your notice.

You must request a Collection Due Process hearing by the date indicated in the notice we send you (for proposed levies, that date is 30 days from the date of the letter). The request must be led timely to preserve your right to judicial review of the determination issued in your Collection Due Process hearing.

If your request for a Collection Due Process hearing is not timely, you can request an Equivalent Hearing within one year from the date of the notice, but you cannot go to court if you disagree with Appeals’ decision.

During a Collection Due Process hearing, the 10-year period for collecting taxes is suspended and we are generally prohibited from seizing (levying) your property, if seizing your property is the subject of the hearing. We are permitted to seize your property during an Equivalent Hearing or a Collection Due Process hearing about ling of a Notice of Federal Tax Lien, but normally we will not seize property during these hearings. The 10-year period for collecting taxes is not suspended during an Equivalent Hearing.

You are entitled to only one Collection Due Process lien hearing and one levy hearing for each tax period or assessment. You are entitled to propose collection alternatives, such as entering into an installment agreement or an offer-in-compromise, for consideration by Appeals in the hearing. It may be necessary for you to submit financial information or tax returns to qualify for such collection alternatives.

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