If you have received a Notice of Federal Tax Lien or a Final Notice of Tax Levy, you can request a Collection Due Process (or CDP) hearing.
A CDP hearing is a legal hearing to contest certain IRS debts. This could benefit you if you believe you do not owe a tax that the IRS is trying to collect from you. It can also benefit the taxpayer because a CDP hearing can be used as an opportunity to set up different ways of payment if you do owe the tax, assuming you still qualify for the hearing.
You must file within 30 days of receiving your eligible notice
You must complete Form 12153 (Request for a Collection Due Process or Equivalent Hearing)
Make sure to carefully identify your reason for disagreeing with the IRS’s decision against you
After your CDP hearing, you will receive a written determination of the hearing from the IRS. If you do not agree with the results, you can appeal a timely filed CDP (a CDP that was filed within 30 days of eligible notice).
If you qualify for Collection Due Process, it is your legal right as a taxpayer to file for a hearing.
If you are wondering if you qualify for CDP and if it can help your tax situation, contact The Tax Man today.