Quick overview

Collection Due Process (CDP) hearings are an administrative protection built into the federal tax-collection system. They let a taxpayer ask the IRS Office of Appeals to review—and potentially stop or modify—certain collection actions before the IRS proceeds. CDP was created by the Restructuring and Reform Act of 1998 and is explained on the IRS website (see IRS: “Understanding Collection Due Process (CDPs)” for official guidance).

This article explains who is eligible, how to request a hearing, what issues can be raised, what to bring, likely timelines and outcomes, common mistakes to avoid, practical tips from my practice, and where to find reliable IRS resources.

(IRS source: https://www.irs.gov/payroll-taxes/understanding-collection-due-process-cdps)

Who is covered and when the CDP right applies

  • The CDP process applies when the IRS issues either a Notice of Intent to Levy or a Notice of Federal Tax Lien (or certain related notices). If you timely request a CDP hearing after those notices, you gain the procedural protections CDP provides.
  • Eligible taxpayers include individuals, businesses, and representatives authorized to act on a taxpayer’s behalf.

Important distinctions:

  • If you received a Notice of Intent to Levy (for example, the levy notice that precedes collection actions), you generally have 30 days from the date of the notice to file a CDP request using Form 12153 (Request for a Collection Due Process or Equivalent Hearing) (IRS: Form 12153).
  • If you miss the 30-day window, you can still request an “equivalent hearing” with Appeals, but you typically lose the specific right to judicial review in the U.S. Tax Court that comes with a timely CDP request. That judicial-review right is one of the most valuable features of timely CDP filing.

(IRS source: https://www.irs.gov/forms-pubs/about-form-12153)

What issues you can raise in a CDP hearing

By statute and IRS procedures, a CDP hearing lets you raise these key issues:

  • Whether the IRS followed proper legal and administrative procedures (for example, whether it actually sent required notices).
  • Whether the proposed collection action is appropriate and necessary.
  • Collection alternatives: ability to propose an installment agreement, an Offer in Compromise, or verification that collection would cause economic hardship (i.e., the collection method is not appropriate because it would make you unable to pay basic living expenses).
  • Challenges to the underlying tax liability are allowed only in limited circumstances—primarily if you did not previously have a chance to dispute the tax (or you provide specific, timely grounds to contest it).

The Appeals officer has authority to verify the assessment, consider alternatives, and negotiate a collection solution when appropriate.

(IRS source: https://www.irs.gov/advocate/understanding-your-appeals-rights)

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

  1. Read the notice. Identify the notice type and the deadline. The notice will include instructions and the 30-day deadline for requesting a CDP hearing.
  2. File Form 12153. This is the official Request for a Collection Due Process or Equivalent Hearing. Keep proof of timely filing (certified mail, date-stamped fax receipt, or electronic submission if available).
  3. Prepare documentation. Typical documents include paystubs, bank statements, a completed Collection Information Statement (Form 433-A, 433-B or 433-F depending on your status), recent tax returns, proof of unusual expenses (medical bills, childcare), and correspondence with the IRS.
  4. Meet with Appeals. Appeals usually conducts CDP hearings informally—by phone, in person, or by written submission. Expect an Appeals officer to verify that the IRS followed procedures, review your collection alternatives, and evaluate whether collection action is appropriate.
  5. Receive Appeals determination. Appeals will issue a written determination. If you timely filed CDP, you generally have the right to appeal that determination to the U.S. Tax Court.

(IRS: Form 12153 and Forms 433 series for collection information)

What to bring and what to submit

Bring clear, organized documents: copies of the IRS notices, tax returns for the years in dispute, paystubs or profit-and-loss statements, bank statements, a proposed plan for resolution (example: proposed installment agreement terms or an Offer in Compromise package), and a completed Form 433-series if you want Appeals to evaluate your ability to pay.

Documentation checklist:

  • Copy of the Notice of Intent to Levy or Notice of Federal Tax Lien
  • Completed Form 12153 (keep a copy)
  • Collection Information Statement (Form 433-A, 433-B, or 433-F)
  • Six months of bank statements and paystubs
  • Proof of extraordinary expenses (medical, disaster losses)
  • Any correspondence that supports your case

Practical timeline and outcomes

  • Deadline to request: generally 30 days from the mailing date of the notice.
  • Appeals determination: varies by case complexity; Appeals issues a written decision after reviewing the facts and any proposed resolution. Complex cases (Offers in Compromise, disputes over liability) can take longer.
  • If you timely requested CDP and are unhappy with the Appeals determination, you generally have the right to judicial review in U.S. Tax Court.

Note: If you miss the 30-day CDP window and request an equivalent hearing, Appeals can still consider the case, but you usually give up the right to take the case to Tax Court after the Appeals decision. That is why timely filing matters.

(IRS source: https://www.irs.gov/payroll-taxes/understanding-collection-due-process-cdps)

How CDP interacts with collection actions (levies and liens)

A timely CDP request generally halts the particular collection action being appealed. For example, if you properly and timely request CDP after a Notice of Intent to Levy, the IRS generally should not levy while the CDP is pending. Similarly, appeals can review lien filings and consider alternatives. However, there are narrow exceptions (especially in jeopardy situations) where the IRS can proceed immediately—those are rare and fact-specific.

If you are dealing with a lien, you should also read our guide on what to do when the IRS files a Notice of Federal Tax Lien: What to Do If the IRS Files a Notice of Federal Tax Lien Against You (https://finhelp.io/glossary/what-to-do-if-the-irs-files-a-notice-of-federal-tax-lien-against-you/).

Offers, installment agreements, and CDP

Appeals can consider alternatives such as an installment agreement or an Offer in Compromise (OIC). If you believe an offer is appropriate, prepare financial documentation and follow the Offer in Compromise rules. See our Offers in Compromise resources for checklists and strategies:

Common mistakes and how to avoid them

  • Missing the 30-day deadline. If you miss it, you may still get relief via an equivalent hearing, but you lose Tax Court review rights.
  • Failing to submit complete financial documentation. Appeals needs clear numbers to evaluate alternatives—missing items delay resolution.
  • Assuming CDP is the same as full litigation. CDP is an administrative review with a focus on correctness and reasonable collection alternatives; it is not a formal trial.
  • Not authorizing a representative. If you choose representation, file Form 2848 (Power of Attorney) so your agent can act for you.

Real-world tips from my practice (15+ years advising clients)

  • Act immediately. I’ve seen simple timely paperwork change outcomes: a single, well-documented Form 433-F coupled with a realistic installment offer often persuades Appeals to accept a repayment plan rather than levy.
  • Be honest and organized. Appeals officers respond better to clear numbers and verifiable evidence. Avoid vague claims of hardship without backup.
  • Consider professional representation for complex cases. When a tax liability or business accounting is disputed, having a qualified tax attorney, CPA or enrolled agent improves the odds of a precise resolution.

Example: I once helped a sole proprietor facing a pending levy by filing a timely Form 12153 and submitting a detailed Form 433-A plus three months of bank statements. Appeals placed the levy on hold and negotiated an installment agreement that fit the client’s cash flow—avoiding wage garnishment and business interruption.

After Appeals issues a determination

  • If you filed timely CDP and Appeals denies relief, you can generally petition the U.S. Tax Court within 30 days of the determination (check the Appeals letter for the specific deadline and instructions).
  • If you did not file timely (i.e., you requested an equivalent hearing), Appeals’ determination may not be reviewable in Tax Court—but you may have other remedies in federal court depending on the facts. Consult counsel.

Where to find authoritative IRS guidance

Final takeaways

Collection Due Process hearings are a powerful, low-cost administrative tool to pause or modify IRS collection actions and to preserve the right to judicial review in Tax Court—if you act within the required timeframe. Gather strong documentation, consider professional representation for complex disputes, and use the Appeals process to explore practical collection alternatives.

Disclaimer: This article is educational and does not constitute legal advice. For personalized guidance—especially where large liabilities, business finances, or litigation risk are involved—consult a qualified tax professional or tax attorney.

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