By knowing your tax rights you can stop an IRS tax levy or an IRS tax lien. You can file an IRS collection due process.

As former IRS agents and managers we understand the system of how to stop the Internal Revenue Service  if they are actively seeking enforced collections against you by filing IRS tax levy or tax lien.

You can stop IRS by knowing your rights.

With a combined 65 years of direct IRS work experience in the local, district, and regional tax office of the Internal Revenue Service we understand the IRS systems, and protocols to stop an IRS tax levy or tax lien.

If you are in receipt of a final notice from Internal Revenue Service you have the right to file a collection due process form 12157.

This allows you to have the Internal Revenue Service take a closer look at your case and suspend all activity until after the collection due process hearing.

Call us today for a free initial tax consultation and we will walk you through the process.

Below you will find commonly asked questions on the collection due process.

Collection Due Process (CDP) FAQs

Q. I just got a Notice Number CP504. It says – “Urgent!! They intend to levy Certain Assets.” I don’t agree that I owe this amount. How can I appeal? Will that stop the levy action?

A. The IRS cannot levy with just this notice.

IRS  must first issue a formal Notice of Intent to Levy, which is the next step after this notice.

Your case is closed as far as any determination about how much you owe, so there is nothing for you to appeal at this point.

However, you do have three options to have your case re-opened so the IRS can consider whether you owe any additional amounts:

• Pay the amount due in full and file a claim for refund. If the IRS disallows your claim, you will have the right to appeal at that time.

Please Note: that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.

• Follow the instructions in Form 656-B and file an Offer in Compromise, Doubt as to Liability.

Q. The IRS Collection function says they are going to file a lien or levy my assets.

What can I do?

A. Contact the Collection function to discuss your situation and your payment options. Refer to Publication 1660, Collection Appeal Rights to review your appeal rights.

Some Collection actions qualify for appeal under the Collection Appeals Program (CAP) and some qualify under the Collection Due Process (CDP) appeal.

These two programs offer different advantages depending on the facts of your case. Publication 1660 will help you decide which is best for you.

Q. I just received a Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, Letter 3172. I don’t believe I owe this amount. What can I do?

A. Refer to Publication 1660. Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing to discuss the lien filing.

You should request a CDP hearing if you feel the lien is inappropriate.

However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances.

If Appeals cannot consider the underlying liability, you have three options to re-open that issue:

• Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to Appeal at that time.

• Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.

• Follow the instruction in Form 656 and file an Offer in Compromise, Doubt as to Liability.

Q. I just received a Letter L-1058 or LT11 FINAL NOTICE OF INTENT TO LEVY AND NOTICE OF YOUR RIGHT TO A HEARING. I don’t believe I owe this amount. What can I do?

A. Refer to Publication 1660. Letter 3172 gives you 30 days to request a Collection Due Process (CDP) hearing. You should request a CDP hearing if you feel the levy is inappropriate.
However, as explained in Publication 1660, in a CDP hearing Appeals can only discuss the existence of or amount that you owe under very limited circumstances.

If Appeals cannot consider the underlying liability, you have three options to re-open that issue:

• Pay the amount due in full and file a claim for refund. If the IRS disallows your claim you will have the right to Appeals at that time.

• Follow the instructions in Publication 3598 and request an Audit Reconsideration. Note that you must submit new information the IRS did not previously consider in order to have an audit reconsideration.

• Follow the instructions in Form 656-B and file an Offer in Compromise, Doubt as to Liability.

Collection Due Process (CDP) FAQs