Collection Due Process
Collection Due Process Hearings
There are four types of notices that the IRS must send before it can levy assets or income, or finalize the recording of a tax lien. These notices must be sent in accordance with the taxpayer’s rights, offering him or her an opportunity to request a hearing to contest the action. The following are these four types of notices.
- Final Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Federal Tax Lien and Your Right to a Hearing Under IRC 6320
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on your State Tax Refund – Notice of Your Right to a Hearing
This hearing is called a “collection due process” hearing. The taxpayer has thirty days from the date of the notice to request it. The hearing is heard by and presided over by an IRS appeals officer and the taxpayer must typically prove that the IRS can use a less intrusive measure to collect the tax then the one they are proposing. The hearing must be requested via IRS form 12153 and mailed to the IRS address provided on the notice. The filing of the request stops collection activity while the hearing date is pending. The taxpayer is entitled to an in person hearing.
Our office uses the collection due process hearing as a useful tool to slow collection activity while we analyze the best legal alternate option to propose to the IRS. We also use it to negotiate alternate options with the more reasonable IRS appeals officer as opposed to the collection division of the IRS.
We have extensive experience in dealing with the collection due process procedure and have used it successfully to help our clients.
If you have received one of the notices mentioned above, contact our office to discuss the use of the collection due process appeal procedure.
