Collection Due Process Hearing Request

Summary

This is a template to request a collection due process (CDP) hearing before a tax appeals office in connection with a tax lien and/or levy action taken or proposed against a taxpayer. To make this request you may also use IRS Form 12153. This template includes practical guidance, drafting notes, and an alternate clause. While the vast majority of taxpayers enclose a check for the tax due with their return, the IRC provides many remedies to the IRS in the event that a tax remains unpaid. These remedies are enforced by the Collection Division of the Office of the Director of each Internal Revenue Service district. The IRS employees in the Collection Division are known as revenue officers. In addition, to facilitate the collection of taxes, the IRS is authorized, after having sent several collection notices, to use pre-authorized private debt collection agencies to collect inactive tax debts. The IRS will contact the taxpayer and the taxpayer's representative stating that the taxpayer's case is being assigned to one of the four private entities and then the entity sends its own letter to the taxpayer and his representative. The taxpayer and agency then discuss payment options and payment plans. The taxpayer should send any agreed upon payment directly to the IRS. Any tax enforcement actions can be made only by the IRS and not by the private agency. Generally, the IRS must send a notice and demand for payment, as soon as practical and within 60 days after assessment, before it may attempt to collect an assessed deficiency, penalty, or a deficiency determined by the Tax Court. I.R.C. §§ 6215, 6662. I.R.C. § 6155 provides that the notice shall state the amount of any tax, interest, additional amounts, additions to tax and assessable penalties. I.R.C. § 7522 provides that the notice shall describe the basis for, and identify the amounts of, tax or other monies due. Notices containing technical defects generally have been held valid so long as the taxpayer is not prejudiced and is afforded the opportunity to litigate his claim. See, e.g., Planned Investments, Inc v US, 881 F2d 340 (6th Cir 1989). See also Hughes v. United States, 953 F.2d 531 (9th Cir. 1991) (numerous final notices of deficiency, notices of levy and notices of garnishment satisfied the requirement of a notice and demand for payment provided the taxpayer was provided with all of the needed information). No notice and demand is necessary in order to collect taxes shown as due by the taxpayer on his return. Treas. Reg. § 1.6151-1(a). For more information on the time periods for collection due process and equivalent hearings, see Treasury Inspector General for Tax Administration, Review of the IRS Independent Office of Appeals Collection Due Process Program (July 21, 2023). Also see IRS, Publication 1660, Collection Appeal Rights; Federal Tax Practice and Procedure § 14.01, Levy and Distraint and Federal Tax Practice and Procedure § 14.02 (2024), Suit for Taxes. For more on the collection due process hearing, see Bender's Payroll Tax Guide § 8.60, "How to Handle an Audit" and Tax Controversies - Audits, Investigations, Trials § 2.03A and Tax Controversies - Audits, Investigations, Trials § 3.06. Also see Tax Practice, Procedure and Controversy Resource Kit.