Quick answer: Preserve the CDP notice and meet its hearing-request deadline before trying to assemble every exhibit. Lien and levy request windows differ. Then organize evidence for the permitted issues and proposed collection alternative, and meet Appeals’ follow-up deadlines.
A Collection Due Process hearing gives a taxpayer an opportunity to ask the IRS Independent Office of Appeals to review certain collection actions. It can address procedural requirements, appropriate collection alternatives and, when permitted, the underlying liability. It does not guarantee that the debt or collection action will change.
Identify the notice and the correct request window
Save the notice, envelope and any delivery information. Identify whether it concerns a filed Notice of Federal Tax Lien, a proposed levy or a levy for which a hearing is offered afterward. Not every IRS balance-due letter offers CDP rights.
| Notice | General hearing-request rule |
|---|---|
| Notice of Federal Tax Lien filing | The 30-day request period begins the day after the five-business-day notification period following the lien filing. |
| CDP levy notice | The hearing request generally must be made during the 30-day period associated with the levy notice. Follow the request deadline printed on that notice. |
The lien rule is in section 6320(a); the levy rule is in section 6330(a). Do not apply “30 days from the notice date” to every lien and levy situation, or start counting from the day you opened the envelope. Check any disputed date, weekend, holiday or other applicable timing rule promptly.
IRS Publication 1660 also explains exceptions in which a hearing follows levy, including certain state-refund, employment-tax, federal-contractor and jeopardy levies. The type of notice matters.
Submit the hearing request before finishing the evidence file
Use Form 12153 or a qualifying written request with the same required information. Identify the taxpayer, contact information, disputed action and tax periods, state the reasons for the request, and provide the required signature. Include the CDP notice. Send it to the hearing-request address on the notice, not the payment address. Confirm the proper number with the IRS if using fax.
The Form 12153 instructions expressly say that a financial statement need not accompany the initial hearing request. Do not lose the deadline while gathering transcripts, appraisals or bank statements. Keep the signed request and proof of timely submission; for mailed requests, retain appropriate dated mailing evidence and delivery records. If a representative signs, provide the required authorization unless already on file.
A request that merely says “please call me” or omits the reason for disagreement is not a substitute for a complete hearing request. Keep responding to new correspondence after filing, and record Appeals’ deadlines for financial forms and supporting evidence.
Understand timely CDP and equivalent hearings
A timely CDP request generally suspends the levy action at issue and the running of the collection limitation period while the hearing and judicial review are pending, subject to statutory exceptions. It does not automatically withdraw a filed lien or erase the debt. See section 6330(e).
If the CDP request is late, an equivalent hearing may still be available. The general request limits are one year after the CDP levy notice, or one year plus five business days after the Notice of Federal Tax Lien filing. An equivalent hearing does not provide the same statutory levy suspension or pause the collection limitation period, and its decision generally does not carry CDP Tax Court review rights. Publication 1660 explains the distinction. Ask promptly about any separate rights that may apply to a particular issue.
Check whether the liability itself can be disputed
A collection hearing is not always a new opportunity to contest the original tax. Under section 6330(c)(2)(B), receiving a statutory notice of deficiency or having another prior opportunity to dispute the liability can prevent an underlying-liability challenge. Prior proceedings can create additional restrictions.
Keep earlier notices, delivery records, appeals correspondence, court documents and relevant returns. A payment-credit error may require bank evidence and account reconciliation, while a challenge to an assessment requires an eligibility review and the supporting tax facts. Separate those issues from a proposal about how an acknowledged balance should be collected.
Build an evidence file around the requested result
| Issue or proposal | Useful evidence | Connection to explain |
|---|---|---|
| Payment not credited | Account transcripts, payment confirmations, canceled checks and the intended tax period | Date, amount, taxpayer and period to which payment should apply |
| Installment agreement | Required financial statement, income records, necessary expenses, assets and debt details | How the proposed payment fits the applicable collection analysis |
| Inability to pay | Current income and living-cost support, assets, liabilities and evidence of a relevant change | Why collection would cause the claimed hardship |
| Offer in compromise | The correct offer forms, financial disclosures, asset values and supporting records | The basis for the offer and how the proposed amount was calculated |
| Lien-related relief | Lien notice, property and loan records, proposed transaction and relevant financial evidence | Why the requested withdrawal, discharge or subordination meets its separate conditions |
| Permitted liability or procedural issue | Returns, notices, mailing history, transcripts and substantiation for the disputed item | The alleged error and the legal issue it supports |
Use the periods requested by Appeals and the applicable forms. Recent bank statements, income records and expense support are often relevant; “three to six months” is not a universal rule for every CDP case. Explain unusual deposits, nonrecurring income and changes since the last return. A business profit figure is not automatically cash available for a monthly payment.
We break down Business Tax Audit Records separately in “Business Tax Audit Records Checklist: How to Protect Your Position.”
Use taxpayer forms for the proposed alternative
Ask Appeals which financial statement and attachments apply, such as Form 433-A or 433-B. An offer based on inability to pay commonly uses Form 656 with Form 433-A(OIC) or 433-B(OIC) and supporting documentation. A liability-only offer has a different process. The IRS offer-in-compromise guidance explains financial eligibility, required filings and payments, and the current application process. Follow Appeals’ submission instructions for an offer raised in the hearing.
Keep required returns, current estimated taxes and employment-tax deposits under review; proposing a collection alternative does not excuse ongoing compliance. An offer application and its financial analysis are separate from the initial CDP hearing request.
Forms 14559 and 14561 appear among internal Appeals case materials in IRM 8.22.4. They are not the taxpayer’s substitute for the required hearing or offer forms. An internal IRS file checklist should not be presented as a list of forms that every taxpayer must prepare.
Index the exhibits and explain discrepancies
Give each exhibit an identifier, description, period and purpose. For example: “P-02 — bank confirmation of $2,500 payment — 2024 income tax — supports request to correct payment credit.” Add a short discrepancy table comparing the IRS account entry, your evidence and the requested correction.
Keep originals and a copy of the exact submission. Clearly label newly prepared summaries and identify the source records. If something is missing, explain the gap and ask about acceptable supporting evidence. Meet the evidence deadline or request more time before it expires; an unanswered request can prevent Appeals from considering the proposal on a complete record.
Distinguish representation from privilege
An eligible representative, such as a CPA, enrolled agent or attorney, can act within the matters and periods authorized on Form 2848. Tax-information access on Form 8821 is different from authority to represent. Neither form by itself grants permission to practice before a court.
It is inaccurate to say that all CPA communications can be subpoenaed while all attorney communications are protected. Section 7525 can extend attorney-client-type protection to qualifying tax-advice communications with federally authorized tax practitioners. It applies in specified noncriminal IRS matters and noncriminal federal tax proceedings involving the United States, and excludes certain written tax-shelter-promotion communications.
Attorney-client privilege also depends on the purpose, confidentiality and circumstances of the communication, with exceptions and possible waiver. Ordinary business records and return-preparation communications are not automatically privileged; see the IRS discussion of privilege in IRM 5.17.6. Have a qualified attorney assess disputed privilege or potential criminal issues before disclosure.
Review the determination and the next deadline
A CDP Notice of Determination generally starts a 30-day period to petition the U.S. Tax Court for review under section 6330(d)(1). Send a court petition through the court’s filing process; continued discussion with the IRS is not the petition. An equivalent-hearing Decision Letter ordinarily has different review consequences.
The Supreme Court held in Boechler v. Commissioner that the CDP petition deadline can be subject to equitable tolling. That is not an automatic extension or a reason to miss the deadline; a late petition needs prompt legal assessment of the actual facts.
To discuss the notice, records and proposed scope of representation, contact CPA Firm South Florida. Confirm responsibilities and fees for the matter. An organized file supports review but cannot eliminate every question, delay or adverse result.
Frequently asked questions
Must I finish the financial exhibits before requesting the hearing?
No. Submit a complete, timely hearing request with the required identifying information, disputed action or periods, reasons and signature. The Form 12153 instructions do not require the full financial statement with the initial request. Meet the later evidence deadlines as well.
Does requesting a hearing stop every collection action?
No. A timely CDP request generally suspends the levy action at issue and the collection limitation period, subject to exceptions. It does not automatically remove a lien. An equivalent hearing does not carry the same statutory suspension.
Can I challenge the amount of tax in a CDP hearing?
Sometimes. A received statutory notice of deficiency or an earlier opportunity to dispute the liability can bar the challenge. Bring the notice and dispute history so the issue can be assessed separately from collection alternatives.
Are all conversations with my CPA or attorney privileged?
No. Section 7525 can protect qualifying tax-advice communications with a federally authorized tax practitioner in specified noncriminal matters. Attorney-client privilege also has conditions and exceptions. Ordinary records and return-preparation communications are not automatically protected.