Form 12153, officially titled the “Request for a Collection Due Process or Equivalent Hearing,” is a crucial tool taxpayers can use to challenge certain IRS collection actions such as tax liens and levies. When you receive a Notice of Intent to Levy or a Notice of Federal Tax Lien, you have 30 days to submit Form 12153 to request a hearing. This halts IRS collection activities related to the disputed tax while your case is reviewed, protecting your rights to dispute the debt or present alternative resolutions.
Understanding the Purpose of Form 12153
Tax collection enforcement actions by the IRS, including liens and levies, can significantly impact your finances. The IRS must provide you the opportunity to contest these actions through a Collection Due Process hearing before enforcement. Form 12153 initiates this process, ensuring you have a legal avenue to dispute the tax debt, report errors such as identity theft, or propose installment agreements and offers in compromise.
Step-by-Step Instructions for Filling Out Form 12153
Accurate completion of Form 12153 is essential to avoid delays or denial of your hearing request. Below is a detailed guide:
1. Identification Information (Part I)
- Provide your full name, mailing address, Social Security Number (SSN) or Employer Identification Number (EIN), and daytime phone number.
- If you have an authorized representative, enter their name, address, and phone number. This can be a tax professional or attorney who will act on your behalf.
Note: Double-check your SSN or EIN to prevent processing delays.
2. Tax Year(s) or Period(s) Involved (Part II)
- Clearly list the specific tax years or periods that the IRS’s collection action pertains to (e.g., 2019, 2020).
- Include all relevant years to ensure the IRS addresses your entire dispute.
3. Type of IRS Action You Are Appealing (Part III)
- Select the type of collection action from the options provided, typically “Notice of Intent to Levy” or “Notice of Federal Tax Lien.”
- Reference your IRS notice to confirm the correct selection.
4. Explanation of Your Dispute (Part IV)
- Use this section to explain in clear, concise terms why you disagree with the IRS action or what alternative arrangement you propose.
- Common reasons include disputing the amount owed, reporting errors such as identity theft, or requesting installment payments.
5. Signature and Date (Part V)
- You must sign and date the form to validate your request.
- If you have a representative signing on your behalf, ensure they include their signature as well.
Common Errors to Avoid
- Missing the 30-day deadline: Filing late forfeits your right to a CDP hearing. Always submit within the stated timeframe.
- Incorrect or incomplete tax years: Omitting or misstating tax periods can delay or invalidate your hearing request.
- Unsigned form: The IRS will reject unsigned submissions.
- Vague or insufficient explanations: Be specific to help the IRS understand your dispute.
Filing and Follow-Up
You cannot submit Form 12153 online; it must be mailed or faxed to the address or number indicated on your IRS notice. Keep copies of the form and any supporting documents such as amended returns or payment receipts.
Example Scenario
Suppose you receive a Notice of Intent to Levy for unpaid 2019 taxes but you believe the amount is incorrect due to an amended return you filed. Filling out Form 12153 with the correct identification, listing tax year 2019, selecting “Notice of Intent to Levy,” and detailing your dispute in the explanation section gives you a chance to have the levy suspended while the IRS reviews your case.
Who Can File Form 12153?
Any taxpayer who receives a Collection Due Process notice regarding IRS collection actions can file this form. You may also authorize a tax professional to file on your behalf with a power of attorney.
Tips for Success
- File your form promptly within the 30-day period.
- Attach supporting documents that back up your claims.
- Maintain copies of all correspondence.
- Consider consulting a tax professional to navigate the complexities of CDP hearings.
Frequently Asked Questions
Can I submit Form 12153 online? No, the IRS requires submission via mail or fax as specified on the notice.
Does submitting Form 12153 stop all IRS collection activities? It pauses levies and liens related to the disputed tax but does not eliminate the underlying tax debt.
What if I miss the 30-day deadline? You lose your statutory right to a CDP hearing but can still pursue other IRS appeals or collection alternatives.
For more detailed information, visit the IRS official page on Collection Due Process Rights and review Form 12153 instructions.
By carefully completing Form 12153 and submitting it on time, you ensure your right to challenge IRS collection actions is preserved while seeking a fair resolution.