When to Request a Collection Due Process Hearing with the IRS

When should I request a Collection Due Process (CDP) hearing?

A Collection Due Process (CDP) hearing should be requested as soon as you receive an IRS notice that tells you of the right to a hearing — most commonly a Notice of Intent to Levy or a Notice of Federal Tax Lien. Filing a timely CDP request preserves your statutory right to have an independent settlement officer in the IRS Office of Appeals review the case and consider alternatives such as installment agreements or an Offer in Compromise.

Below I cover the triggers, deadlines, step-by-step instructions, documentation to prepare, likely outcomes, and common pitfalls based on IRS rules and my experience as a CPA working on collection cases.

Which IRS notices trigger a CDP right?

• Notice of Intent to Levy (commonly mailed as Letter LT11 or similar) — this notice must include the taxpayer’s right to a CDP hearing under Internal Revenue Code (IRC) §6330. You generally have 30 days from the date on the notice to file a CDP request. (See IRS guidance: About Form 12153.) IRS: About Form 12153

• Notice of Federal Tax Lien filing — when the IRS files a Notice of Federal Tax Lien, it must send a separate notice of your right to a CDP hearing under IRC §6320. That notice generally gives you 30 days to request a CDP.

If you get either notice, act quickly. In my practice, missed deadlines are the most common reason taxpayers lose the strongest protections and remedies.

How to request a CDP hearing (step-by-step)

1. Read the notice carefully. It will say whether the notice is under IRC §6320 (lien) or §6330 (levy) and include instructions and the 30-day deadline.

2. Complete Form 12153, “Request for a Collection Due Process or Equivalent Hearing”. This is the standard form to ask Appeals for a CDP hearing. You can include a cover letter summarizing your reasons (financial hardship, identity theft, incorrect assessment, etc.). IRS: About Form 12153

3. Gather supporting documentation:

• Recent pay stubs, bank statements, and a completed Collection Information Statement (Form 433-F or Form 433-A/B depending on case specifics).
• Documentation of hardship (medical bills, proof of dependent care, eviction notices).
• Proof of filing and payment history or any correspondence disputing the underlying tax.

1. Submit the request to the address or fax number shown on the notice. The IRS generally accepts mail or fax for Form 12153; follow the notice-specific instructions.

2. Consider filing a Power of Attorney (Form 2848) if you want a representative to speak for you. Appeals often communicates directly with a properly authorized representative.

3. Keep proof of mailing/fax and retain copies of everything submitted.

What happens after you request CDP?

• Appeals assigns a settlement officer who reviews whether the IRS followed proper procedures and evaluates reasonable collection alternatives. The officer will verify the underlying tax liability (unless you timely raised doubt as to liability) and consider collection alternatives including installment agreements or Offers in Compromise.

• While the CDP is pending, the IRS generally suspends the proposed levy for the tax periods and assets identified in the CDP notice. For lien CDP matters, the filing of a CDP request preserves your right to appeal the lien but does not necessarily remove the lien while Appeals considers the case. Always confirm the specific stay/suspension language in your notice and with Appeals.

• The settlement officer will issue a written determination. If you disagree with the determination, you usually have 30 days to petition the U.S. Tax Court for judicial review of the CDP determination.

Common outcomes the Appeals officer may consider

• Releasing a levy or lifting a bank levy temporarily.
• Approving an Installment Agreement. (See our guide on Setting Up an IRS Installment Agreement.) Setting Up an IRS Installment Agreement
• Accepting an Offer in Compromise or recommending collection alternatives. (See our Offer in Compromise coverage.) Offer in Compromise (OIC)
• Determining the IRS followed proper procedures and sustaining the collection action.

Deadlines and timelines — be precise

• You normally have 30 days from the date on the notice to request CDP. The exact date is on the notice — do not rely on memory.

• After you file the request, Appeals will contact you; timelines vary but expect initial contact within a few weeks and a determination within 45–120 days in many straightforward cases. Complex matters can take longer.

• If Appeals issues an adverse determination, you typically have 30 days from the date of that determination to file a petition in the U.S. Tax Court.

If you miss the 30-day CDP window

Missing the 30-day deadline does not eliminate all options. You can still pursue collection alternatives directly with the IRS (installment agreements, Offers in Compromise, currently not collectible status) or request consideration through the Collection Appeals Program (CAP) depending on your situation. However, CAP and other post-deadline processes usually do not provide the same protections (e.g., immediate right to Tax Court review) that a timely CDP request offers.

In my experience, clients who try to negotiate after the deadline often have less leverage and may face ongoing levies or bank levies while working through non-CDP channels.

What to include in your CDP submission (checklist)

• Completed Form 12153 (signed and dated).
• Collection Information Statement (Form 433-F or 433-A/B) or a clear summary of monthly income and expenses.
• Proof of income (pay stubs, business receipts) and bank statements.
• Documentation of special circumstances (medical bills, recent job loss, letters from creditors).
• Power of Attorney (Form 2848) if you intend to use a representative.
• Copies of prior correspondence with the IRS disputing the tax, if applicable.

Mistakes to avoid

• Waiting past the 30-day deadline to request CDP.
• Assuming an oral phone call with collections preserves CDP rights — you must file a written Form 12153 within the deadline.
• Failing to submit credible financial documentation early — Appeals needs information to evaluate collection alternatives.
• Hiring an unqualified representative — use a credentialed tax pro and file Form 2848 to authorize them.

Practical tips from a CPA’s practice

• File Form 12153 immediately by certified mail or fax if your notice allows faxing. Early filing preserves rights and often leads to a quicker stay of collection action.

• Include a clear “ask” in your cover letter: whether you’re requesting an installment agreement, temporary suspension for hardship, or an Offer in Compromise. That helps Appeals know what relief to evaluate.

• If you are pursuing an Offer in Compromise, prepare to submit detailed financial disclosures; Appeals can and will consider OICs. See our Offer in Compromise resources for documentation and strategy. Offer in Compromise (OIC)

• If an immediate levy has already hit a bank account, normal CDP steps can still help secure a release; concurrently request a levy release with the IRS and include that request in the CDP case. See our guide on stopping a bank levy for practical steps.

Example scenarios

• Example 1 — Wage levy notice: You receive an LT11 stating the IRS intends to levy wages. You file Form 12153 within 30 days and include a completed Form 433-F showing limited disposable income. Appeals schedules a hearing and accepts a direct debit installment agreement, preventing wage garnishment.

• Example 2 — NFTL (lien) filing: The IRS records a Notice of Federal Tax Lien and sends the 6320 notice. You request CDP and argue collection alternatives; Appeals sustains part of the lien but agrees to release the NFTL from specific property after negotiation.

• Example 3 — Missed window: You miss the 30-day window after an LT11. You can still ask collections for relief or pursue CAP, but you no longer have the automatic right to appeal to Tax Court via CDP. A negotiated installment agreement may still prevent further enforcement.

When to involve a tax professional or attorney

• If the case involves large tax amounts, complicated business finances, potential seizure of business assets, or identity/theft issues, a qualified tax attorney or CPA with collection experience should be engaged.

• File Form 2848 to authorize your representative so Appeals will communicate directly with them.

Authoritative sources and further reading

• IRS — About Form 12153, Request for a Collection Due Process or Equivalent Hearing: https://www.irs.gov/forms-pubs/about-form-12153
• IRS — Collection Due Process (CDP) Hearings (Appeals): https://www.irs.gov/appeals/collection-due-process-cdp-hearings
• U.S. Tax Court — rules for filing petitions after Appeals determinations: https://www.ustaxcourt.gov/

Final takeaways

Request a CDP hearing immediately after receiving a Notice of Intent to Levy or a Notice of Federal Tax Lien if you want to preserve the right to have an independent Appeals officer review the case and consider alternatives. Use Form 12153, include clear financial documentation, and consider professional representation when amounts or complexity are significant.

Professional disclaimer: This article is educational and reflects my professional experience as a CPA. It does not substitute for individualized legal or tax advice. For specific guidance on your situation, consult a tax professional or attorney.

Related FinHelp resources:

• Setting Up an IRS Installment Agreement: https://finhelp.io/glossary/setting-up-an-irs-installment-agreement/
• Offer in Compromise (OIC): https://finhelp.io/glossary/offer-in-compromise-oic/
• LT11 Notice: Intent to Levy (more on levy notices): https://finhelp.io/glossary/lt11-notice-intent-to-levy/