Dealing with the IRS can be a frightening experience, especially when it comes to matters of collection. If you’re facing tax debt and the IRS is taking steps to collect, you have rights as a taxpayer, one of which is the opportunity to request a Collection Due Process (CDP) hearing. Understanding what a CDP hearing entails and why having experienced tax professionals on your side is vital can make a significant difference in the outcome of your case.
What is a Collection Due Process (CDP) Hearing?
A Collection Due Process (CDP) hearing is a formal proceeding conducted by the IRS to provide taxpayers with the opportunity to challenge or appeal certain collection actions. These actions include the filing of a federal tax lien, intent to levy, or actual levy.
When is a CDP Hearing Available?
Taxpayers are eligible for a CDP hearing upon receiving specific notices from the IRS. These notices include:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
What Happens During a CDP Hearing?
During a CDP hearing, taxpayers have the opportunity to present their case before an impartial IRS officer, typically known as an Appeals Officer. The taxpayer can provide evidence, raise legal arguments, and propose alternatives to the proposed collection action.
Key Questions to Know About CDP Hearings:
1. What are my rights during a CDP hearing?
In a CDP hearing, taxpayers have the right to:
- Present evidence supporting their case
- Challenge the IRS’s proposed collection action
- Appeal decisions made during the hearing
2. How do I request a CDP hearing?
Taxpayers must submit a timely request for a CDP hearing, usually within 30 days from the date of the IRS notice. This request should include specific information, such as the grounds for disagreement and proposed resolutions.
3. Can I represent myself or should I seek professional assistance?
While taxpayers have the right to represent themselves during a CDP hearing, seeking assistance from a tax professional, such as a tax attorney or enrolled agent, can enhance their chances of a favorable outcome. Tax professionals can provide expertise in navigating complex tax laws and presenting a compelling case.
4. What happens if I miss the deadline to request a CDP hearing?
Failing to timely request a CDP hearing forfeits the taxpayer’s right to challenge the proposed collection action through this avenue. However, alternative options may still be available, such as requesting an equivalent hearing or negotiating with the IRS.
5. What are the possible outcomes of a CDP hearing?
Following a CDP hearing, the Appeals Officer will issue a determination letter outlining their decision. Possible outcomes include sustaining the proposed collection action, modifying the action, or withdrawing it altogether. Taxpayers dissatisfied with the determination have the right to appeal to the U.S. Tax Court.
Do you want to increase your chances of a successful outcome in a CDP Hearing?
If you are aiming to increase your prospects of a successful outcome in a Collection Due Process (CDP) Hearing, hiring a tax attorney will be your wisest move. At the law office of Steven N. Klitzner, we specialize in tax laws and IRS procedures, and we can help to assess your situation comprehensively. We can help you prepare your case and come up with an effective defense strategy by identifying potential errors or legal nuances that could tip the scales in your favor.
Throughout the hearing process, we will advocate and ensure the protection of your rights, present your case, and navigate IRS inquiries or challenges. With our experience in handling IRS matters, we can negotiate for you and work to reach a favorable resolution, be it establishing a reasonable payment plan or negotiating an Offer in Compromise.
Don’t face the IRS alone — let us guide you through the complexities of a CDP hearing and maximize your chances of a positive outcome. Contact us today to secure the expert representation you need for a successful resolution of your tax issues.
Contact us today for a free and confidential consultation!
