Question

A taxpayer receives a final notice of intent to levy. The notice indicates that the taxpayer has an opportunity to file a Collection Due Process hearing request. Due to very explainable circumstances the taxpayer is not able to file the requested appeal (Form 12153) until 45 days after the date of the notice. Will the taxpayer receive a hearing before the IRS? If so, what type of hearing will the taxpayer receive?

Answer 1

You must have your Form 12153 postmarked within thirty days of the date marked on the levy or lien notice if you do not want to risk the IRS taking your assets while you wait for a hearing.

If you don’t submit the form within that 30 days, you can still ask for an equivalent hearing within a year and five days of the date on your notice. However, debt collection activities will not stop in the meantime. If the hearing determines that the levy or lien was filed in error or another agreement is reached, the IRS will cease its debt collection efforts.

What happens at a collection due process hearing?

A collection due process hearing is informal, so you won’t have to swear in and no transcripts are recorded. It occurs over the phone or in person.

The hearing decides whether or not the appeal is justified and takes into consideration pertinent details such as medical bills related to serious health issues or debts originating from a spouse or ex-spouse. At the hearing, you can argue for innocent spouse relief, which is a defense that claims your partner was the individual actually responsible for the debt.

At the end of a CDP hearing, the IRS writes a Notice of Determination which answers the following:

• Did the IRS deliver the lien or levy correctly via registered mail with a receipt?
• Will the lien or levy will be placed?
• What are the details of a payment arrangement, if one was made?
• Did the IRS accept innocent spouse relief or any other defense?
• Was relief offered?

After getting the Notice of Determination, you have exactly 30 days to appeal to the Tax Court of the US District Court.