Collection Due Process Programs
and Collection Appeals Procedures
Current law allows taxpayers an
opportunity for a meaningful hearing
to review the IRS's decision to file a
Notice of Federal Tax Lien (NFTL) or
propose a levy of a taxpayer's assets.
At a CDP hearing, a taxpayer may raise
any pertinent issues related to the
unpaid tax, the lien, or the proposed
levy, including arguments as to the
appropriateness of the collection
action, alternatives to collection (such
as an offer in compromise [OIC] or an
installment agreement [IA]), spousal
defenses, and, in some instances, the
underlying tax liability.
The IRS must provide a CDP notice
to the taxpayer after it has filed the
first NFTL or generally before its first
intended levy for the particular tax and
tax period. Specifically, a CDP hearing
is available if a taxpayer receives one
of the following notices: (1) Notice of
Federal Tax Lien Filing and Your Right
to a Hearing under IRC 6320; (2) Final
Notice Notice of Intent to Levy and
Notice of Your Right to a Hearing; (3)
Notice of Jeopardy Levy and Right of
Appeal; (4) Notice of Levy on Your State
Tax Refund Notice of Your Right to
a Hearing; or (5) Post Levy Collection
Due Process (CDP) Notice.
The IRS must provide notice to the
taxpayer not more than five business
days after the day of filing the NFTL,
or not less than 30 days before the
In cases where the
IRS has filed a lien, the CDP lien
notice must include, "in simple and
nontechnical terms," that the taxpayer
has the right to request a hearing within
a 30-day period beginning on the day
after the end of the five-business-
day period post-filing of the NFTL.
And, in cases involving a proposed
levy, the CDP levy notice must inform
the taxpayer of the right to request
a hearing within the 30-day period
beginning on the day after the date of
the CDP notice.
With respect to both lien and levy pro-
cedures, the taxpayer must submit a
signed and dated written request for
a CDP hearing within the applicable
The IRS encourages taxpay-
ers to use Form 12153, Request for a
Collection Due Process or Equivalent
Hearing, in requesting a CDP hearing
so that the request can be readily iden-
tified and forwarded to Appeals.
Generally, the IRS will suspend levy
action for the period during which
a CDP hearing involving a notice of
intent to levy is pending.
the IRS has determined that (1) the
collection of tax is in jeopardy, (2) the
collection resulted from a levy on a
state tax refund, (3) the IRS has served
a disqualified employment tax levy,
or (4) the IRS has served a federal
contractor levy, collection activity will
not be suspended, and the taxpayer
will only be given the opportunity for a
hearing within a reasonable period of
time after the levy, not before.
Employment Taxes and The
Disqualified Employment Tax Levy
Of particular concern to accountants
and attorneys, particularly those repre-
senting business owners, is the excep-
tion to the pre-levy notice requirement
for disqualified employment tax levies
(DETL). The Small Business and Work
Opportunity Tax Act of 2007 amend-
ed IRC §§ 6330(f) and (h) to permit
the issuance of a DETL for collection
of certain employment taxes without
See Internal Revenue Code ("IRC") § 6320(c),
Notice of Opportunity for Hearing Upon Filing
of Notice of Lien and § 6330(c), Notice and
Opportunity for Hearing Before Levy.
IRC § 6330(c)(2).
See Collection Appeal Rights, Publication
1660 (Rev. 2-2014), https://www.irs.gov/pub/
IRC §§ 6320(a)(2) (2015).
IRC § 6330(a)(2) (2015).
IRC § 6320(a)(3)(B) (2015); Treas. Reg. §
IRC § 6330(a)(3)(B) (2015); Treas. Reg. §
Treas. Reg. §§ 301.6320-1(c)(2)A-C1(ii) and
Treas. Reg. § 301.6320-1(c)(2)A-C1(iv)
IRC § 6330(e)(1).
IRC § 6330(f).