Quick overview
A Collection Due Process (CDP) hearing is your formal, statutory right to challenge certain IRS collection actions before the IRS takes or continues enforcement (levies, liens). The hearing pauses most collection activity while Appeals reviews your case and considers alternatives such as an installment agreement, an offer in compromise, or a determination of currently not collectible status (financial hardship) (IRS: Collection Due Process). Requesting CDP in time is one of the most effective ways to stop immediate harm and force a neutral review.
Who can ask for a CDP and when
You can request a CDP hearing if you receive a statutory notice showing the IRS proposes to levy your property or is filing (or has filed) a Notice of Federal Tax Lien (NFTL). The notice will explain how to request the hearing and the deadline—usually 30 days from the notice date. Use the instructions on the notice and, where required, file Form 12153 (Request for a Collection Due Process or Equivalent Hearing) promptly (IRS: Collection Due Process).
Note on Equivalent Hearing vs. CDP: the IRS sometimes offers an Equivalent Hearing. If you accept an Equivalent Hearing you typically waive the right to later bring the dispute to U.S. Tax Court; a true CDP request preserves that judicial review right. If judicial review is important to you, request CDP explicitly and follow the procedure on the notice.
What the Appeals officer reviews
At the CDP hearing the Appeals officer is required to:
- Verify that the IRS followed applicable procedures (notice, assessment, and statutory rules).
- Consider any challenges to the underlying tax liability (only if you did not previously have a chance to dispute the tax in court).
- Consider appropriate collection alternatives based on your financial circumstances (e.g., installment agreement, offer in compromise, or currently not collectible status).
The officer must consider all relevant facts and issues you present and explain the final determination in writing.
How to prepare — documentation and strategy
In my 15 years as a CPA representing taxpayers, the strongest CDP results come from clear evidence and organization. Prepare a concise packet with:
- Signed Form 12153 (if required) or the written request following the notice instructions.
- Clear identification (name, SSN/EIN, notice number, contact info).
- Recent tax returns and any correspondence showing disputed assessments were filed timely.
- A completed financial statement (assets, monthly income and living expenses, real property values, and account balances).
- Pay stubs, bank statements, lease or mortgage statements, and bills showing your living costs.
- Documentation that supports any collection alternative you seek (e.g., proposed installment schedule, offer in compromise calculations, or proof of hardship).
Bring originals and provide a concise one-page summary of your key points for the Appeals officer. If you want the hearing by phone, request it; Appeals commonly offers phone hearings but will do face-to-face or decide on written submissions if appropriate.
Common collection alternatives the Appeals officer may approve
- Installment agreement (short- or long-term). See our guide on installment agreements for types and how to apply: Installment Agreements: Types, Costs, and How to Apply (https://finhelp.io/glossary/installment-agreements-types-costs-and-how-to-apply/).
- Offer in Compromise (accept less than the full tax debt if you meet strict criteria). Learn how offers are valued and prepared: What Is an Offer in Compromise and How It Works (https://finhelp.io/glossary/what-is-an-offer-in-compromise-and-how-it-works/).
- Currently Not Collectible (temporary relief if paying would create hardship).
- Withdrawal or subordination of a Notice of Federal Tax Lien in limited circumstances.
Choosing between alternatives is fact-specific; in practice, many taxpayers obtain the best result by proposing a realistic monthly payment backed up by their financial statements.
Timeline and appeals after the hearing
After your hearing, the Appeals office issues a written determination. You typically have 30 days from the date of that determination to file a petition in U.S. Tax Court if you disagree with the result and you properly requested CDP (this is why requesting CDP rather than an Equivalent Hearing is important if you want litigation rights). If you miss the CDP request deadline, you generally lose the CDP process and the related Tax Court right—though you can still negotiate directly with the IRS or pursue other appeals routes.
Real-world examples from practice
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Client A: A small-business owner received an intent-to-levy notice for unpaid payroll taxes. We filed Form 12153 within days and supplied a three-month cash-flow projection and an offer of a modest installment agreement. Appeals accepted the installment plan; the levy was rescinded.
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Client B: An individual with limited assets faced a NFTL. By documenting low collection potential and submitting a detailed financial package, Appeals placed the account in Currently Not Collectible status for a determined period, avoiding wage garnishment.
These results relied on timely action and a clear financial package that showed either the feasibility of payments or the inability to pay.
Common mistakes to avoid
- Missing the 30-day deadline: this often forfeits CDP and Tax Court rights.
- Accepting an Equivalent Hearing without understanding you may waive Tax Court appeal rights.
- Showing up without a financial statement or evidence—verbal claims rarely persuade Appeals.
- Failing to identify the exact issue (liability vs. collection) you want Appeals to address.
If you miss the CDP deadline
Missing the CDP deadline doesn’t end all options. You can still:
- Contact the IRS collection office to negotiate directly.
- Request an innocent spouse or offer-in-compromise consideration where applicable.
- Seek relief in bankruptcy or other legal remedies depending on facts.
However, those routes generally lack the automatic stay provided by a CDP request and usually do not provide Tax Court review.
Step-by-step checklist
- Read the IRS notice immediately and note the CDP deadline.
- File Form 12153 or follow the notice’s written request instructions within the stated time frame.
- Assemble financial documents, tax returns, and a one-page summary of your requested outcome.
- Decide whether you want a phone, in-person, or written hearing and indicate that preference.
- Attend the hearing and be concise—Appeals favors clear, documentary support.
- Review Appeals’ written determination and, if still disputed, consider petitioning U.S. Tax Court within the allowed window.
Internal resources (finhelp.io)
For collection alternatives and practical preparation guides, see:
- Detailed offer in compromise guidance: What Is an Offer in Compromise and How It Works (https://finhelp.io/glossary/what-is-an-offer-in-compromise-and-how-it-works/).
- Practical guidance on installment agreements: Installment Agreements: Types, Costs, and How to Apply (https://finhelp.io/glossary/installment-agreements-types-costs-and-how-to-apply/).
- For lien-specific issues and withdrawal/subordination: How Tax Liens Are Recorded, Released, and Affected (https://finhelp.io/glossary/how-a-federal-tax-lien-affects-your-ability-to-sell-property-or-refinance/).
Sources and further reading
- IRS — Collection Due Process (CDP) hearings: https://www.irs.gov/appeals/collection-due-process-cdph
- IRS — Your Rights as a Taxpayer: https://www.irs.gov/newsroom/your-rights-as-a-taxpayer
- IRS Publication 5, Your Appeals Rights: https://www.irs.gov/pub/irs-pdf/p5.pdf
Professional disclaimer: This article is educational and does not substitute for personalized tax or legal advice. Facts are current as of 2025 but IRS procedures can change—consult a qualified tax professional or attorney for guidance specific to your situation.
If you want, I can review the notice language you received (redacting personal data) and give a short checklist of documents to submit with your CDP request.
