Overview

When the IRS issues a Notice of Intent to Levy or a Notice of Federal Tax Lien, taxpayers have administrative appeal rights designed to protect due process. The two primary routes are a Collection Due Process (CDP) hearing (timely requests) and appeals handled by the IRS Appeals Office. Each path lets you request collection alternatives and ask an independent Appeals officer to review the IRS’ proposed action (IRS, Collection Due Process (CDP); IRS, Appeals) (https://www.irs.gov/appeals/collection-due-process-cdp; https://www.irs.gov/appeals).

Step-by-step: How to appeal and preserve rights

  1. Read the notice immediately. Note the deadline and the exact action (levy or lien). Notices explain your Collection Appeal Rights (CARs).

  2. Decide which appeal applies. If the notice is a Notice of Intent to Levy or a Notice of Federal Tax Lien, you usually must request a CDP hearing within 30 days to preserve certain taxpayer rights, including the ability to petition the U.S. Tax Court after Appeals issues a determination (IRC §§6320, 6330; IRS CDP page).

  3. File the request on time. Request a CDP hearing in writing following the notice instructions or by submitting Form 12153 (Request for Collection Due Process or Equivalent Hearing) as directed on the IRS notice (IRS CDP page).

  4. Prepare documentation. Bring proof of income, expenses, bank statements, and any reasonable collection alternative you propose (installment agreement, offer in compromise, or currently not collectible status). Appeals can consider whether the proposed collection action is appropriate and whether the IRS followed legal procedures.

  5. Attend the hearing. CDP hearings are often telephonic; Appeals is independent of the revenue collection function. You can be represented by an attorney, CPA, or an enrolled agent.

  6. After Appeals issues a decision. If your hearing was a timely CDP request tied to a lien or levy, you generally may seek judicial review in the U.S. Tax Court (follow IRS guidance and Tax Court deadlines). If you missed the CDP window, alternative appeal routes (for example, the Collection Appeals Program or local Collection Manager reviews) may still be available but with different protections and remedies (IRS, Collection Appeals Program).

What Appeals will and won’t review

  • Appeals will review: whether IRS followed proper procedures, whether proposed collection action meets statutory requirements, and whether proposed collection alternatives (installment agreement, offer in compromise, or temporarily non-collectible status) are reasonable under the taxpayer’s financial situation.
  • Appeals generally will not re-litigate the underlying tax liability if you already had an earlier opportunity to dispute the tax (exceptions exist; consult a professional).

Common outcomes and collection alternatives considered

  • Installment agreement (monthly payments). See our guide to setting up an IRS installment agreement for practical steps and online options.
  • Offer in Compromise (OIC) — settling for less than full balance if you meet strict criteria. See our offer-in-compromise guidance for documentation tips and decision criteria.
  • Currently Not Collectible (CNC) status — temporary suspension when collection would cause economic hardship.
  • Withdrawal of a Notice of Federal Tax Lien — sometimes negotiated in exchange for an installment agreement or OIC.

(Internal links: For an easy payment route, see “Setting Up an IRS Installment Agreement Online: A Practical Walkthrough” and for settlement options, “When an Offer in Compromise Is a Realistic Option: Decision Criteria”.)

Missed the CDP deadline — what then?

If you miss the 30-day CDP window, you lose the automatic right to a CDP hearing and its Tax Court petition option. However, you can still: request a collection appeal through the Collection Appeals Program (CAP), ask the local Collection Manager for a review, or negotiate directly for relief. Remedies are more limited and timing can affect your leverage.

Practical tips from practice

  • Act within the timelines. I’ve seen cases where a client preserved the right to Tax Court review simply by mailing a timely Form 12153 and buying months to negotiate a workable installment agreement.
  • Document the hardship. A clear budget, recent paystubs, and proof of unavoidable expenses make Appeals more receptive to CNC or reduced-payment proposals.
  • Use professional representation for complexity. Appeals officers give weight to organized financial submissions and credible representatives (CPA, attorney, or enrolled agent).

Short real-world example

A small-business client facing a bank levy filed a timely CDP request and proposed a partial-payment installment plan with supporting cash-flow statements. Appeals accepted the plan and stayed the levy while the client paid down the balance — an outcome that preserved the business and satisfied the IRS.

Frequently asked questions

Q: Can I represent myself at Appeals?
A: Yes. You can also appoint an attorney, CPA, or enrolled agent. Professional representation often helps with complex financial documentation.

Q: Does Appeals forgive penalties or interest?
A: Appeals may recommend penalty relief or accept a collection alternative that reduces overall burden, but penalties and interest typically continue until a balance is resolved unless abated under specific rules.

Sources and where to read more

Disclaimer

This article is educational and does not constitute legal or tax advice. For advice tailored to your situation, consult a qualified tax professional or attorney.

Author note

I’m a tax practitioner with experience helping clients through Appeals and CDP hearings; practical organization and timely filing are the two biggest factors that change outcomes in my experience.