Hyden, Miron & Foster, PLLC Law Blog

Thursday, June 25, 2020

What Is a Collection Due Process Hearing with the IRS?

The IRS, like every person and organization, is not infallible. They make mistakes. They miscalculate. They try to take collection actions when they may have miscalculated the amount owed. Because these things do happen, the Collection Due Process hearing is made available to taxpayers who disagree with the amount of tax the IRS claims they owe. This right to a hearing can rectify a tax situation that should never have happened. It is important that you understand what a Collection Due Process Hearing with the IRS is as well as how it may help you.

What is a Collection Due Process Hearing with the IRS?

Filing a Collection Due Process Hearing Request with the IRS allows you to dispute a tax debt. If you have an unresolved tax debt with the Internal Revenue Service (IRS), they may begin collection activities include sending you a Notice of Federal Tax Lien (NTFL) and filing a bank levy. In the alternative, the IRS may also pursue wage garnishment. Filing a Collection Due Process (CDP) hearing request, if done in a timely manner, will stop all pending IRS collection actions. You have 30 days from the time you receive a Notice of Intent to Levy and Right to Request a hearing from the IRS to file a CDP hearing request.

Internal Revenue Code Section 6320 grants taxpayers the right to request a hearing before an impartial officer when the IRS has filed a federal tax lien against you or when the IRS has provided you with notice of its intent to file a levy against you. To file a CDP request, you must complete and submit IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing. In this form, you will be required to provide background information about yourself. You will also be required to submit the reason or reasons why you believe the IRS is wrongfully pursuing a lien or intent to levy against you. This is where you would explain why you think there is a discrepancy in the tax amount you owe. You must properly complete IRS Form 12153 or it will be rejected.

At the CDP hearing, you may request an installment agreement that would allow you to pay back owed taxes in manageable installments. In the alternative, you may submit an Offer in Compromise or some other type of collection alternative. The CDP hearing also allows you the opportunity to be treated as an innocent spouse. Additionally, the CDP hearing allows you to dispute the amount of tax liability the IRS is claiming you owe.

Tax Attorneys

Dealing with the IRS can be intimidating, frustrating, and even scary. The power they wield over taxpayers has long been the source of anxiety for many Americans. Know that there are remedies available to you when the IRS claims you owe taxes that you believe you do not. Talk to the knowledgeable tax attorneys at Hyden, Miron & Foster about your options. Contact us today.


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