Overview

When the IRS issues a Notice of Intent to Levy (levy) or files a Notice of Federal Tax Lien (NFTL), you generally have 30 days from the date on the notice to request a Collection Due Process (CDP) hearing. A CDP hearing gives you a chance to ask the IRS Office of Appeals to verify the assessment, review collection alternatives, and determine whether the proposed collection action is appropriate. Filing a timely CDP request preserves your right to judicial review in Tax Court for many matters and usually pauses levy activity while Appeals considers the case (IRS: Collection Due Process (CDP) Hearings; Form 12153).

Source: IRS, “Collection Due Process (CDP) Hearings” and Form 12153 instructions (see https://www.irs.gov/forms-pubs/about-form-12153).

When can you ask for a CDP hearing?

  • If you receive a Notice of Intent to Levy — you generally have 30 days from the date on the notice to file Form 12153.
  • If you receive a Notice of Federal Tax Lien — you generally have 30 days from the date on the NFTL notice to file Form 12153.

If you miss the 30-day window you lose the statutory CDP right (and the direct path to Tax Court), but you can still request an Equivalent Hearing with the IRS Collections office handling your case. An Equivalent Hearing is administrative only and doesn’t provide the same Tax Court review rights as a timely CDP request (IRS guidance).

Step-by-step: How to request a CDP hearing

  1. Read the notice carefully
  • The notice will explain the type of action (lien vs. levy), the relevant date, and where to mail or fax Form 12153. The notice also lists contact numbers and the office handling your case.
  1. Complete Form 12153 (Request for a Collection Due Process or Equivalent Hearing)
  • Use IRS Form 12153; follow the instructions closely. The form asks you to identify: taxpayer name and SSN or EIN, the tax periods involved, reasons for requesting the hearing, and any collection alternatives you propose. You can include documentation with the form.
  • Form 12153 cannot be e-filed — it must be mailed or faxed to the address/number shown on your notice or the Form 12153 instructions (IRS).
  1. Decide who will represent you
  • You can represent yourself or authorize someone (attorney, CPA, enrolled agent, or other representative). To appoint a representative with full power to act, submit Form 2848 (Power of Attorney). If you do not file a POA, the IRS may still accept limited contact designations on Form 12153 but formal representation is best practice.
  1. Gather supporting documentation

  • Financial statements (pay stubs, bank statements)

  • Proof of income and monthly living expenses

  • Documents that challenge the IRS’s position (e.g., prior tax returns, filing receipts, corrected assessments)

  • Any proposed collection alternatives (installment agreement terms, Offer in Compromise pre-qualifier results)

    In my practice I find a two-column financial worksheet (income vs. expenses) and a one-page executive summary of proposed terms makes it easier for Appeals officers to see the practical solution.

  1. Submit Form 12153 within 30 days
  • Mail or fax to the address/number shown on your notice. Keep proof of mailing (USPS Certified Mail receipt) or a fax confirmation page showing the number and timestamp. Document all contacts in a case log.
  1. Wait for Appeals to assign an officer and schedule the hearing
  • After your timely request, the IRS Office of Appeals will assign an Appeals Officer. The hearing is typically conducted by phone but may be in person if requested or necessary. Expect requests from Appeals for verification of income/expenses and possibly additional documentation.
  1. The hearing and determination
  • The Appeals Officer will verify the assessment (unless you are contesting liability on grounds that were already litigated or if you previously received a statutory notice and had an opportunity to challenge liability). Appeals will also consider collection alternatives and whether the proposed collection action is appropriate.
  • After review, Appeals will issue a Notice of Determination in writing. If you disagree with the determination you may have the right to petition the U.S. Tax Court — for CDP lien or levy determinations, you must generally file the petition within 30 days of the Notice of Determination (IRC §6330(d)).

Sources: IRS CDP pages and Form 12153 instructions.

What does a CDP hearing actually review?

Appeals will look at three primary areas:

  1. Verification that the IRS followed proper procedures (assessment and notification)
  2. Any issues relating to the underlying tax liability (only if you didn’t have a prior opportunity to dispute the liability)
  3. Whether collection actions are appropriate and whether alternatives (installment agreement, lien withdrawal, Offer in Compromise, or other collection alternatives) are reasonable under the taxpayer’s circumstances

Appeals is independent of the field collection function. The process is administrative and meant to produce a negotiated resolution where possible (IRS Office of Appeals mission statement).

Does an IRS CDP request stop the levy or lien?

  • Levy: Filing a timely CDP request generally suspends the levy action while Appeals considers the matter. This gives taxpayers immediate relief from enforced collection in many cases (IRC §6330; IRS guidance).
  • Lien: Filing a CDP request does not automatically remove the lien filing, but it gives you the right to challenge the lien and request relief such as lien withdrawal or a subordination.

Note: If a levy already seized property before a CDP request, the Appeals Officer can review and may recommend release or return of property depending on the circumstances.

Practical tips and documentation checklist

  • File within 30 days: preserve your CDP rights and possible Tax Court review.
  • Include a concise cover letter with Form 12153 summarizing your request and the remedy you want (e.g., installment agreement, OIC, release of levy).
  • Attach a one-page financial snapshot and supporting documents.
  • Send by certified mail or fax and keep the confirmation.
  • If you expect imminent hardship (e.g., loss of job, foreclosure), note that clearly and provide proof — Appeals can weigh urgency in scheduling and decisions.
  • Consider filing Form 433-F (collection information statement) if proposing an installment agreement; if considering settlement, review the Offer in Compromise guidance (see internal resources below).

In my practice, a clear “what I can afford” monthly number, backed by bank statements and bills, goes a long way. Appeals officers are often more receptive to reasonable, documented proposals than to vague promises.

Common mistakes to avoid

  • Missing the 30-day filing window and losing CDP rights.
  • Submitting an incomplete Form 12153 without timelines or contact info.
  • Failing to attach or produce supporting financial documentation.
  • Not appointing an authorized representative when someone else will handle negotiations.

After Appeals issues a determination

  • If you receive a Notice of Determination and disagree, you usually have 30 days to file a petition with the U.S. Tax Court for judicial review of the CDP decision (see IRC §6330(d)(1)).
  • If you did not file a timely CDP request and instead used Equivalent Hearing procedures, Tax Court review is typically not available, and you’ll need to work through other administrative or collection alternatives.

When to consider professional help

A tax attorney, enrolled agent, or CPA who regularly handles CDP hearings can:

  • Ensure Form 12153 is completed and filed correctly and on time,
  • Prepare a focused financial package and proposed terms,
  • Represent you at the hearing or file the proper power of attorney, and
  • Identify strategic options (installment agreements, partial payment installment agreements, Offer in Compromise).

If you’re evaluating an Offer in Compromise as a possible resolution, see FinHelp’s guide on “What Is an Offer in Compromise? Eligibility, Process, and Alternatives” and the practical checklist in “How to Prepare a Strong Offer in Compromise Package” for next steps and documentation.

Final notes and disclaimer

This guide summarizes the typical CDP process and practical steps to file Form 12153 and prepare for an Appeals hearing. It is educational and does not replace personalized legal or tax advice. Tax laws and IRS procedures change; always check the latest IRS pages for Collection Due Process and Form 12153 instructions, and consult a qualified tax professional for advice tailored to your situation.

Author note: In my 15+ years assisting taxpayers with IRS collection matters, timely filing and a focused financial presentation are the two single most important factors that influence a favorable Appeals outcome.

Authoritative sources cited in this article: IRS, Collection Due Process (CDP) Hearings; IRS Form 12153 instructions; Consumer Financial Protection Bureau (general consumer rights in collection).