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The Collection due Process is a great way to stop IRS Levies and IRS Tax Lien. It is very important to file a timely CDP request. If you are having issue with the IRS and you are at this point in your case, you truly need to have professional representation for effective results. We are former IRS Agents and Managers who have worked thousands of tax cases. Call us today for a free consultation.
Things you should know.
- To receive a CDP levy hearing:
- You must submit a written request for a CDP levy hearing within the 30-day period commencing the day after the date of the CDP levy notice.
- To receive a CDP lien hearing:
- You must submit a written request on or before the “must file by” date on the Letter 3172. Timely (CDP) hearing requests suspend the collection statute.
- If Appeals upholds the collection action it issues any one of a number of letters indicating aNotice of Determination Concerning Collection Action(s) Under IRC 6320 and/or IRC 6330, informing taxpayer’s of their right to seek judicial review of Appeals determination in Tax Court; if taxpayers agree with the resolution they may sign a Form 12257, Summary Notice of Determination, waiving their judicial review rights.
- Taxpayers may return to Appeals for a Retained Jurisdiction hearing regarding the determination, e.g., collection actions under that determination or a change in circumstances which affects the determination.
Common questions and answers for a CDP Hearing
Question:.
I just got a Notice Number CP504. It says – “Urgent!! We intend to levy Certain Assets.”I don’t agree that I owe this amount. How can I appeal? Will that stop the levy action?
Answer:
The IRS cannot levy with just this notice. They must first issue a formal Notice of Intent to Levy, and that is the next step after this notice. You should therefore call the number on the notice to discuss this situation and your payment options.
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 get 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.
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 and file an Offer in Compromise, Doubt as to liability.
Question:
The IRS Collection function says they are going to file a lien or levy my assts. What can I do?
Answer:
Be sure to 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.
Question:
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?
Answer:
Refer to Publication 1660. The 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.
Question:
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?
Answer:
Refer to Publication 1660. The 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.
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