Background

The IRS adopted the Taxpayer Bill of Rights to make the system clearer and fairer; it lists fundamental protections such as the right to be informed, the right to challenge IRS actions, and the right to representation (IRS Taxpayer Bill of Rights). Separately, the IRS Collections and Appeals procedures set out how those protections operate when the agency seeks payment — for example, by lien, levy, or administrative offset (IRS Collections and Appeals Rights).

How it works

  • Notice and timing: Most collection actions begin with a written notice. If you receive a Notice of Intent to Levy or a Notice of Federal Tax Lien, you are generally eligible to request a Collection Due Process (CDP) hearing; the CDP request deadline is shown on the notice (commonly 30 days for CDP). Always check the specific notice — deadlines vary by notice type and situation (IRS Collections and Appeals Rights).

  • Appeals and Office of Appeals: If you disagree with a collection decision, you may be able to raise the issue with the IRS Office of Appeals after (or instead of) administrative collection actions. Appeals is an independent organization within the IRS whose role is to resolve disputes fairly and impartially.

  • Alternatives to full payment: During collections and appeals you can ask for other remedies — installment agreements, temporary collection suspension for hardship, or an Offer in Compromise (OIC) — depending on eligibility and documentation.

Real-world examples (in my practice)

  • Levy postponed via CDP: A client received an intent-to-levy notice. We timely requested a CDP hearing and negotiated an installment agreement that prevented a bank levy and spread payments over a manageable term.

  • Audit result appealed: Another client disagreed with an audit assessment and filed an administrative appeal; Appeals reduced the tax after reviewing supporting records.

Who is affected

Any individual or business that receives IRS collection notices (liens, levies, or proposed assessments) or a statutory notice of deficiency may have appeal rights or other protections. Eligibility for specific rights (for example, CDP hearings or OICs) depends on the notice type, prior collection actions, and your current compliance status.

Key taxpayer rights

Right What it means
Right to be Informed Clear explanations of the amount owed, why, and what to do next (notice and contact info).
Right to Challenge IRS Decisions Request a CDP hearing or file an administrative appeal with the Office of Appeals.
Right to Representation Authorize a representative (CPA, enrolled agent, or attorney) to act for you.
Right to Confidentiality Tax information is protected by law.
Right to Fair Treatment Expect professionalism and respectful behavior from IRS employees.

Action steps if you get a collection notice

  1. Read the notice carefully and note the deadline. Deadlines on notices control your appeal rights.
  2. Preserve records: save tax returns, correspondence, bank statements, and any documents supporting your position.
  3. Respond or request a hearing before the stated deadline if you disagree. For CDP-eligible notices, request the hearing promptly (the notice will state the deadline).
  4. Consider options: installment agreement, OIC, currently not collectible status, or bankruptcy — evaluate with a tax professional.

Professional tips and strategies

Common mistakes and misconceptions

  • Waiting to act: Many taxpayers believe a problem will go away. It rarely does; appeals and relief options often require timely action.
  • Assuming all notices are optional to contest: Some notices carry strict deadlines for appeal or petitioning the Tax Court.

Frequently asked questions

Q: What if I disagree with the amount the IRS says I owe?
A: Follow the instructions on the notice. Many collection notices allow you to request a CDP hearing or an administrative appeal — deadlines are on the notice. If the notice is a statutory notice of deficiency, you generally have 90 days to petition the U.S. Tax Court (60 days if the notice was mailed to a person outside the U.S.). Check the specific notice and consult IRS guidance.

Q: How can I stop a levy or lien?
A: Request a CDP hearing if eligible, negotiate an installment agreement, or provide proof the levy would cause hardship. In some cases you can obtain a temporary stay; consult the notice and IRS collections guidance.

Authoritative sources

Disclaimer

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