Collection Due Process (CDP) gives taxpayers a statutory right to a hearing before an independent IRS Appeals officer before the IRS levies, and after it files a notice of federal tax lien, with review by the U.S. Tax Court. The deadlines are short, and the issues that can be raised are defined by statute. This article walks through the process.
When CDP Rights Arise
Before a levy. Under IRC §6330, the IRS generally must give written notice at least 30 days before a levy, explaining the right to request a hearing during that 30-day period. The IRS’s final notice, Notice LT11 or Letter 1058, serves this purpose.
After a lien filing. Under IRC §6320, the IRS must notify the taxpayer within 5 business days after filing a notice of federal tax lien. The taxpayer may request a hearing during the 30-day period beginning the day after that 5-day period.
A hearing is requested on Form 12153. Some levies, such as jeopardy levies and levies on state tax refunds, are not subject to the pre-levy hearing requirement, although the taxpayer is given a hearing within a reasonable time afterward.
The Hearing
The hearing is conducted by the IRS Independent Office of Appeals, through an officer or employee who has had no prior involvement with the unpaid tax. The taxpayer may raise any relevant issue relating to the unpaid tax or the proposed collection action, including:
Spousal defenses.
Challenges to the appropriateness of the collection action.
Collection alternatives, which may include posting a bond, substituting other assets, an installment agreement, or an offer in compromise.
The taxpayer may challenge the underlying tax liability only if the taxpayer did not receive a statutory notice of deficiency for that liability or did not otherwise have an opportunity to dispute it.
In making a determination, the Appeals officer must consider whether the requirements of applicable law and administrative procedure have been met, the issues the taxpayer raised, and whether the proposed collection action balances the need for efficient collection of taxes with the taxpayer’s legitimate concern that collection be no more intrusive than necessary.
Levy Suspension and the Collection Period
While a timely requested CDP hearing, and any appeal of the determination, is pending, levy actions for the tax periods involved are generally suspended, and so is the running of the collection limitations period.
Petitioning the Tax Court
A taxpayer who disagrees with the Appeals determination may petition the U.S. Tax Court within 30 days of the determination (IRC §6330(d)(1)). In Boechler, P.C. v. Commissioner (2022), the U.S. Supreme Court held that this 30-day deadline is nonjurisdictional and subject to equitable tolling. Tolling is the exception, not the rule, so the deadline should be treated as firm.
The Tax Court can consider only issues that were properly raised in the CDP hearing; under the regulations, an issue is not properly raised if it was not presented to Appeals, or if no evidence was offered on it after a reasonable opportunity. If the unpaid tax does not exceed $50,000, the taxpayer may elect the Tax Court’s small tax case procedures (IRC §7463(f)(2)). The Tax Court’s filing fee is $60, and the court describes circumstances in which it may be waived.
The Tax Court’s CDP jurisdiction is tied to the levy. In Commissioner v. Zuch (2025), the Supreme Court held that the Tax Court lacks jurisdiction under §6330 to resolve disputes between a taxpayer and the IRS once the IRS is no longer pursuing a levy, for example because the balance has been satisfied.
If the 30-Day Deadline Was Missed
A taxpayer who misses the CDP deadline for a levy notice may request an equivalent hearing within one year after the date of the notice. Appeals considers the same kinds of issues, but an equivalent hearing does not suspend collection, and its decision generally cannot be appealed to the Tax Court.
Preparing for the Hearing
A collection alternative is more likely to be considered when it is supported by complete financial information, such as a collection information statement and documentation of income and expenses, and when all required returns have been filed. Every issue the taxpayer may want the Tax Court to review later should be raised, with evidence, at the hearing.
Request a CDP hearing within 30 days of the notice, raise every issue and collection alternative at the hearing, and calendar the 30-day deadline for a Tax Court petition from the date of the determination.
The Bottom Line
CDP is the main opportunity to have an independent officer, and potentially the Tax Court, review a proposed levy or a lien filing before collection proceeds. Its value depends on meeting the deadlines and building a complete record at the Appeals level.
Received a Final Notice of Intent to Levy?
Tax attorney Cassra Minai, Esq. can review your collection notices and CDP rights in a confidential consultation.